Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda Packet 05/20/2014
CITY COUNCIL MEETING QR T NGE S 321 East 5th Street GEL 20, 2014 !111111"u„° 8 �1 I � G -r 0 , U. 5, A. SPECIAL MEETING - 5:00 m. mr I p - 00414191 REGULAR MEETING - 6:00 p.m. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. Mayor to determine time of break. The items of business for regular Council meetings may include the following: A. CALL TO ORDER- SPECIAL MEETING AT 5:00 P.M. 1. Planning Commission Interview—Nancy Powers 2. Executive Session under authority ofRCW 42.30.110(1)(i), to discuss potential litigation with legal counsel. CALL TO ORDER -REGULAR MEETING AT 6:00 P.M. B. ROLL CALL PLEDGE OF ALLEGIANCE CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Washington Parks&Recreation Association Award—Janet Young C. PUBLIC COMMENT - D. LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS - E. CONSENT AGENDA/Approve 1. City Council Minutes:April 81',22nd,29"',and May 6,2014................................................................................................E-1 2. Expenditure Approval List: 04/26/14 to 05/09/14 for$3,496,612.49..................................................................................E-11 3. Justice Assistance Grant/Interlocal Agreement with Clallam County/Authorize the City Manager to sign Interlocal Agreement with Clallam County and authorize the Police Department to accept the 2014 BJA Local JAG grant funds in the amount of$10,195, and to spend funds in cooperation with Clallam County to improve the joint active shooter training program................................................................................................................................................................................E-38 4. Turf Sweeper Purchase l Approve and authorize the City Manager to sign a contract with Toro Rake-O-Vac,for the purchase of a new turf sweeper/vacuum machine available on state contract from Western Equipment Distributors for the price of $32,560, and to make minor modifications to the contract, if necessary.............................................................................E-42 5. Material Purchase:95 and 300 Gallon Refuse Containers,Contract SW-14-010 l Award the 95 gallons refuse containers contract to Otto Environmental Systems in the amount of$19,382.09, and award the 300 gallons refuse containers contract to Rotational Molding in the amount of$16,02 7.45, including all taxes and expenses;and authorize the City Manager to sign these contracts and to make minor modifications, if necessary............................................................................................E-43 6. Simple Steps Amendment No. 1 to Project Order-02 l Authorize the City Manager to sign the Simple Steps Amendment No. 1 to Project Order-02 in the amount of$125,000, and to make any minor modifications as necessary.................................E-45 7. Memorandum of Agreement- ORCAA l Authorize City Manager to sign agreement with the Olympic Region Clean Air Agency for continued operation of an ambient air monitoring station on the roof of the Eire Department........................E-47 8. Planning Commission Appointment/Appoint Nancy Powers.............................................................................................E-51 Mayor to determine time of break/Hearing devices available for those needing assistance. May 20, 2014 Port Angeles City Council Meeting Page - 1 9. Interlocal Agreement with Olympic Memorial Hospital District/Approve and authorize the City Manager to sign an Interlocal Agreement with Olympic Memorial Hospital District to transfer ownership of the District's medium voltage electrical system to the City, and to make minor modifications to the Agreement, if necessary..........................................E-55 F. QUASI-JUDICIAL MATTERS —REQUIRING PUBLIC HEARINGS (6:30 P.M.or soon thereafter)................................................................................................................................................None G. PUBLIC HEARINGS—OTHER (6:30 P.M. or soon thereafter) 1. Solid Waste Utility Rate Ordinance/Conduct Public Hearing/Conduct 1st Reading/Continue to June 3'a..................... G-1 2. Financial Policy Revisions/Continue Public Hearing/Conduct 2"a R,,d,,g of Resolution/Adopt........................................ G-28 H. ORDINANCES NOT REQUIRING PUBLIC HEARINGS 1. Issuance of Solid Waste Revenue Bonds/Conduct ISt Reading/Continue to June 3'a........................................................ H-1 2. Issuance of Solid Waste LTGO Bonds/Conduct T"Reading/Continue to June 3'a..........................................................H-63 3. Mixed Use Overlay Zone/Conduct T"Reading/Continue to June 3'a ............................................................................. H-97 4. Port Angeles Forward Committee Ordinance Amendment/Conduct 2"a Reading/Adopt..............................................H-113 5. Rezone Proposal—REZ 14-01 —Phillips Et al—Race Street between 4tb/5th Streets/Conduct 2"a Reading/Adopt........H-118 6. Purchasing Policies&Procedure Ordinance Amendment/Conduct 2"a Reading/Adopt................................................ H-125 I. RESOLUTIONS NOT REQUIRING PUBLIC HEARINGS 1. Personnel Policy Manual.........................................................................................................................................................I-1 J. OTHER CONSIDERATIONS....................................................................................................................................None KFINANCE ............................................................................................................................................................................None L. COUNCIL REPORTS- M. INFORMATION City Manager Reports: 1. Planning Commission Minutes..............................................................................................................................................M-1 2. Parks&Recreation First Quarter Report..............................................................................................................................M-4 N. EXECUTIVE SESSION O. ADJOURNMENT - PUBLIC HEARINGS Public hearings are set by the City Council in order to meet legal requirements. In addition, the City Council may set a public hearing in order to receive public input prior to making decisions, which impact the citizens. Certain matters may be controversial, and the City Council may choose to seek public opinion through the public hearing process. Mayor to determine time of break/Hearing devices available for those needing assistance. May 20, 2014 Port Angeles City Council Meeting Page -2 \' ` � �„ �.I 0 2014 w W A S H I N G T O N, U. S. A. �6 1 (i`I Y APPLICATION FOR APPOINTMENT TO BOARD, COMMISSION OR COMMITTEE Board, Commission or Committee to which you are seeking appointment: Applicant Name and General Information First g MI Last Home Street Address M .r. City State Zip Home phone Work phone Cell phone 6,111ek0el L E-mail address Date of Birth (to be completed only by applicants for Public Safety Advisory Board for purposes of criminal history check to ensure compliance with Port Angeles Municipal Code 2.26.020) Certification and Location Information (circle one) Are you employed by the City of Port Angeles? YesNo Are you a citizen of the United States? Yes 1 No Are you a Registered Voter? ('Ye"s) No You y Are ou a City resident? No If so,how long K4.. Do you own/manage a business in the City? Yes No Do you hold any professional licenses,registrations or certificates in any field? Yes No'� If so,please list: 1 A - 1 I Are you aware of any conflict of interest which might arise by your service on a City Board or Commission? If so,please explain:�o Work or Professional Experience - List most recent experience first,or attach a resume Emp4+r Title From(M/Y) To(M/Y) B ief job description Employe Titl f From ("42 )Y'011f)-c", Is A) V — V -.J Brief job descriptiod Ali), Employer Title From(M/Y) To(M/Y) Brief job description Education - List most recent experience first Yes No Institution/Location Degree earned/Mai or area of study Gradualcd��— r Yes N;o Institution/Location Degree earned/Major area of study Graduated. Yes No Institution/Location Degree earned/Major area of study Graduated? Charitable, Social and Civic Activities and Memberships - List major activities you have participated in during the last five years Organization/Locatiodi Group's purpose/objective #of members Brief description of your participation: Organization/Location Group's purpose/objective #of members Brief description of your participation: 2 A - 2 Questions Why are you interested in this particular Board orCommission? What in your background or experience do you think would help you in serving on this 30a d? Ex What ia your understanding o[the responsibilities of this particular Board or Commission? Please feel free to odd any additional comments you wish tomake regarding your application. Submit completed forms kV: OFFICE 0F THE CITY MANacDfl 1[0RE0AB,I0RCE,,DEPUTY CITY CLERK 360-417-4630 orbpicruo@uhvnfha.ua City of Port Angeles 32| ]B. 5'' Street PO Box ll50 Port Angeles, WA 98362 |n compliance with the Americans with Disabilities/\d, if you need special accommodations because o[ophysical limitation,please contact the City Manager's Office at 417.4500 so appropriate arrangements can be made. ] A - 3 x x Janet Youn !K� WRPA Citizen :# of Piro""x xx Merit Award Winner .......... ..... ....... .. ............. .......... .. ....x .. � �x ....... x x 7m . x x x� .e x r PUBLIC INTEREST SIGN-UP SHEET • P RTANGELES CITY COUNCIL REGULAR MEETING F, ,;io W A S H I N G T 0 N, U. S. A. DATE OF MEETING: May 20, 2014 LOCATION: City Council Chambers You are encouraged to sign below if: 1. You are here to listen to the City Council discussion on a particular agenda item; 2. You want to speak during the Public Comment period of the agenda. If several members of the public are interested in a particular agenda item, the Mayor may move that item so it is discussed earlier in the meeting. Also, the Mayor may use the information provided to organize the Public Comment period. During the Public Comment portion of the meeting, the Mayor will invite citizens to talk with the Council about topics that are not scheduled for public testimony on the evening's agenda. Prior to the start of the "Public Comment" portion of the public hearing, all persons wishing to be heard are asked to sign in with the Clerk, giving their names and addresses, and topic. The Mayor may arrange the order of speakers so that testimony is heard in the most logical groupings. To allow time for the Council to complete its legislative agenda, comments should be limited to no more than 5 minutes per person and a total of 15 minutes for this comment period. At the discretion of the Mayor,these time periods may be lengthened or shortened. Following any public comment,the Mayor may allow time, limited to five minutes, for response from City Council members and/or City staff. No speaker may convey or donate his or her time for speaking to another speaker. If many people wish to speak to a particular issue, the Mayor may limit the total amount of time dedicated to that single issue. Written comments may be submitted into the record of a Council meeting by presenting the written document to the Clerk prior to the meeting, in which case a copy of the document will be provided to each Council Member, but the document will not be read aloud; or a document may be distributed to the City Council, with a copy to the Clerk, by a speaker while the speaker is addressing the Council. VA y V p 1�"V Ll V w . roc j 0 7 v /N7T P�V�Yom--I CK.-5VQ�p Y/N /N G:\Group\C1erk\Forms\Counci1 Attendance Roster.doc PUBLIC INTEREST SIGN-UP SHEET N Y/N Y /N Y /N Y /N Y / N Y/ N Y/N Y/N Y /N Y/N Y /N Y /N Y /N Y/N Y/N Y /N Y/N Y /N Y /N Y /N Y/N Y /N Y/N Y/N Y/N G:\Group\Clerk\Forms\Council Attendance Roster.doc May 20, 2014 Dear Port Angeles City Council members, Dan McKeen, Craig Fulton, and Phil Lusk: I received this email last Wednesday from Jerry Day. Jerry is an Emmy Award winning film producer and consumer rights advocate keenly focused on smart meters. In this first email he answers my question: Where can my City utility find 9000 new analog meters? Virginia, If your power company wanted to order analog meters they could find them instantly and have an order for 9000 filled within 90 days, even if the meters were made to order. Every major meter manufacturer could fill that order. Every current major meter manufacturer has made and sold analog meters in the past and could do so again in the blink of an eye.They will make and sell whatever meters are ordered. The failure and refusal to provide safe and lawful analog meters has nothing to do with the "availability" of those meters. Digital meters are "necessary" to bring about a global surveillance network that will produce data so personal and valuable that everyone in the corporate/state influence matrix is determined to impose this without fail. For a power company to say analog meters are "unavailable" is like a company saying that, because it uses computers, it is no longer able to get pencils. Jerry He also sent me the following email last Tuesday, describing how to test older analog meters for accuracy: Virginia, Millions of analog meters were in service for 100 years, every one of them calibrated and tested and relied on for all utility revenue for that entire time but nobody happened to notice that they were "inaccurate"? Is there no limit to the absurd, unsupported, and ridiculous lies we are to be told?Any analog meter can be tested and adjusted for accuracy in ten minutes. Your city utility just exposed themselves as criminals (fraud) and liars and you can tell them I said so. On the other hand, there is no possibility they don't already know they are liars. The meters you need are traditional analog meters or, in other words, meters with no radiation transmitting capability, no illegal surveillance data recorder and no switching mode power supply (dirty electricity). All of those things are criminal trespass unless installed with fully informed consent. The only meter that is currently legal and does not violate property rights is a true analog meter with NO DIGITAL COMPONENTS OF ANY KIND. Jerry Day I ask you to consider this information and vote to put an end to the smart meter roll-out in Port Angeles. Thank you. Sincerely, V- 1.11 - �_,_1kz_ Virginia Leinart 3002 S. Peabody Port Angeles, WA 98362 C1111rIEPIT4 c AN fit � q r. ; om, (-11-` Alt OA may,,, y, g Am tA noel Cc qpr ® y 70,/ Aja� S,�-:qo�m toll-03 , w .e p- �s 115 15 r` IM�; ray u . ... �'-TAA,:Sv A(MA) for " «use' 1� K w "' ^" � � k �( C (C . . �sy 6 . w.� t4 �r.w. _Y�"." � '� r„. l.J �1. ��""� �2 1!.a .............._ _....,._._, ...__...,...,,.,,... .,..., .. �' `"r� l.� �°�'�"'l_.(��.Yw�.'" � �\.,A..*�t�Nb`A... �..�E�..,�41'wd"��,� V -m.._..,. vim" G d A V ,� fft �,��- ........... � � Y h iiry r ✓ ^uma��mavw i � t ��� `,.ra, ��"��" 'R�r�ormS� �,'. � " � �' �m;a i ell- wt Oft i xMU- 0.0iv Po m � " r� .. w ... fit Of Asto aw) for i��;A*&rvoi"am o � r �y c „ 40 N f'llf 941 viry a. m r '60? qf+a, /2 � a� G x� " lit � � 1 4 w D ASS!_.,_. _... ... a ' d. .L• 05. LOW e, Wt- (i, Am �x f �f .e. �n � ;. m � u � wua :ur�.rr�+� ���� ,�sawv`. uiu�„n✓a i rvron, � y, ,.•.�, IvIerim n, x x d, i M i ,y r ry A x• r To P.A.City Council May 20, 2014 I am Eloise Kailin, a retired physician resident at 140 Kane Lane, Sequim. I address you as Secretary Treasurer of a brand new Non Profit Corporation: "Hard Wired for Safety". I also address you as an experienced clinician, Board Certified in my specialty of Allergy and Immunology, I have over 30 years service as writer and editor of medical abstracts for the Journal of Allergy, ran allergy clinics and a private practice, became a professor at Howard University School of Medicine, chaired the Technical Committee on Air Pollution for Washington DC's Metropolitan Council of Governments for about 3 years, was qualified as Expert Witness for Air Pollution in the first Clean Air Act case in the state of Maryland . I have published over 20 research articles in peer reviewed journals; two were double blind studies. Two featured electrornyography . My research received financial support from National Institutes of Health, but no pharmaceutical or other corporate entities. It is important that you consult with an expert in electromagnetic radiation poisoning who is not affiliated with the electric and smart meter industry. Dr. Henry Lai analyzed 326 research publications issued between 1990 and 2006 reporting on whether various effects on cells, tissues or functions were influenced by use of cell phones. . Only 30% of studies funded by the cell phone industry reported effects, compared to 70% of those funded independently. You have been told: No double blind studies for electromagnetic hypersensitivity have been done. Actually I have found three such studies, one not yet published, and two which I have given you. You were told that FCC guidelines were protective and meter discharges would be only a tiny fraction of permitted levels. Guidelines or no, the radiation emitted from smart meters like those being installed in Port Angeles are making people sick and this is confirmed by the use of"the gold standard, double blind testing.".(I) The American Academy of Pediatrics asks for re-evaluation of standards because existing ones are thought not to protect children. EPA's Radiation Division Director says that FCC Guidelines do not apply to the non-thermal radiation we are concerned with.(2) A question to staff:: How long does the smart meter transmit? Answer : "Transmits only once daily, with an average duration of one second or less." WRONG: An Administrative Law judge asked detailed questions on these emissions and we learn from the answers by electric utilities representatives that there are a number of categories of emissions. Not only is data sent to the utility, but keeping a system integrated means a lot more bursts of energy are sent to neighboring homes and to appliances within a residence. Page 5 of this document reports an average number of transmissions in a 24 hr. period as from 1,268 to 25,916 times, or up to once every 3.3 seconds. A non-industry publication on the web is extremely interesting and I gave it to the Utility Committee May 13. The Title is "Study to Determine the Presence of Dirty Electricity from Smart Electric Meters in Southern California". The author provides oscilloscope tracings of waveforms within homes fitted with Landys+Gyr smart meters (like many in P.A.) and shows electric spikes at a timing typical of discharges from the power supply of that meter. He found two brands of other meters which do not produce this "dirty electricity". The spikes in question and their amplitude appear to be related to symptoms of electromagnetic hypersensitivity Please consider a SEPA determination even though most utility projects are exempt. As a no action alternative to smart meters, keeping the existing analog meters looks better all the time . When these wear out, refurbished ones are available and are expected to remain available for a long time. Cost is quoted at $15.00 per meter. I attach an e-mail from one supplier(5). Attachments: 1. Washington State Medical Association Reports, April, 2014. Page 5. John Vassall M.D. Double blind testing in clinical trials is the gold standard for diagnosis and treatment. 2. a letter from Director of Radiation Division Frank Marcinowski of the US EPA, July 16, 2002.: "It is correct to say that there is uncertainty about whether or not current guidelines adequately treat nonthermal, prolonged exposures (Exposures that may continue on an intermittent basis for many years....The FCC's current exposure guidelines, as well as those of the Institute of Electrical and Electronics Engineers (IEEE) and the International Commission on Non-Ionizing Radiation Protection are thermally based, and do not apply to chronic, nonthermal exposure situations." 3. 1 attach the 10 pages of"Before the Public Utilities Commission of the State of California" . "Response of San Diego Gas and Electric Company (U 902 E) On the Administrative Law Judge's Ruling Seeking Clarification". Dated Nov. 1, 2011 4. Submitted to UAC 5/13/14) "Study to Determine the Presence of Dirty Electricity from Smart Electric Meters in Southern California" httl)://«,\Niv.createhealtlivh.oji,ies.coii-i,lsri,iart meter stuch,� hp. Page 4 of 32: "Extensive measurements have demonstrated that all of the meters measured so far, including ABB, GE, and Landis Gyr, emit noise on the customer's electric wiring in the form of high frequency voltage spikes, typically with an amplitude of 2 volts, but a frequency anywhere from 4,000 Hertz , up to 60,000 Hz." 5. e mail, 2 pages, from Helen Sears to Eloise Kailin, Response of Hialeah Meter Co. 5/19/2014 lisk Management T-14 - 0 1 "i 4 -9 7E mobc ,l /_ Only recently has patient engagement and aseptic technique or even simple hand washing. patient satisfaction been studied and factored More recently the evidence base of medicine has become the standard.The gold standard for,diagnosis into the outcomes equation. and treatment is based on randomized double-blind con- trolled clinical trials whose results are nepoxt6-with con- The engaged patle n,gL, Tidence�intervals. Before druas can be used in humans they now have to be rigorously studied and tested, By JOHN VASSALL, IVID Foo__daKd_ approved by the rum g Administration and Case 1 manu acture using modern met ods and strict quality, controls.'Surgical care has improved and many more A 68 -YEAR-OLD OBESE, diabetic surgical procedures have been developed. Daily,world- a-n was discharged to home after A A wide there are now more surgical procedures performed three days in the hospital for treatment than normal non-operative vaginal deliveries. of congestive heart failure. He was told Patients have not consistently benefitted from these to make a follow-up appointment with advances. Patients have not always attained maximum 411111 his primary care physician within 48 positive outcomes even when advanced diagnostic and hours of discharge. He called his doctor treatment options are available. the next day but was unable to get an appointment until One reason is that we have not fully engaged and the following week. He did well for three days, then expe- involved our patients in the design of their care. Nor rienced another bout of heart failure and was readmitted have we always actively secured their acceptance of the to the hospital. During the second admission his nurse plan in order to assure that they fully participate. Only found out that he had misunderstood his discharge direc- recently has patient engagement and patient satisfaction tions and was not taking his medications as prescribed. been studied and factored into the outcomes equation. Case 2 It seems a straightforward proposition that a patient A nurse colleague recently told me she left her primary who is well educated about her condition, has partici- care physician of 20 years and for the past year has been pated in the plan, understands her physician's instruc- under the care of a nurse practitioner. In that time she's tions and practices self-care is likely to have a better out- lost 30 pounds, has been able to discontinue two of her come than the patient who does not.To achieve these three medications for hyperten- best outcomes, physicians and their staffs need to engage Can physicians be satisfied sion and arrested the rise in her and-educate their patients. when half their patients can't fasting blood sugar levels. In this regard, an ongoing study by the Washington Although I wasn't able to thor- Health Alliance (www.wAcommunityCheckup.org) shows see them in a timely manner oughly convince her that nei- disappointing results. Between September and November and up to a quarter are not ther the physician's paternalistic 2013, about 40,000 patients returned a survey of their getting helpful, courteous and style nor the ARNP'S inclusive experience with their doctor.The survey included 46 respectful communication? approach is representative of all medical groups with 185 clinic locations in five Puget in those professions,we did Sound counties. Only 54.1% reported always getting agree that her engagement with her practitioner and timely appointments for care and timely information; involvement in her care are the secrets to her recent 79.2% reported their providers always communicated health successes. and 73.2% said the office staff was always helpful, cour- teous and respectful. Can physicians be satisfied when Discussion half their patients can't see them in a timely manner and The practice of medicine is both art and science with up to a quarter are not getting helpful, courteous and science now rapidly gaining the upper hand.When respectful communication? I think not. today's baby boomers were children, their parents' medi- What can you do? cal care was more art than science. Great emphasis was placed on physical diagnosis and great physicians were The first step physicians can take in having a positive renowned diagnosticians.Treatment options were lim- influence on a patient's health is to be accessible to that ited.The few dozen medications in use were prepared patient. Patients need timely access to their doctor and to individually by dispensing pharmacists.A limited num- relevant health and medical information for their care. ber of surgical procedures were performed, often without Physicians need to learn how best to reach out to our patients, and how to be certain that when patients reach This column is made possible through the support of Physicians out to us or to our staff they feel respected, they find us Insurance.Opinions expressed here are not necessarily those held by courteous, responsive, open to their questions and ready Physicians Insurance or WSMA. continued on page 10 5 1144"U REPORTS APRIL 2014 ® I See It 'To understand value,you have to marry the report different data to different insurers to evaluate the cost data from payers to the clinical data sets same performance. that providers have! After reviewing the many ways in which health infor- mation is being exchanged, Rick Rubin, CEO at One- HealthPort, said that patients' behavior is likely to drive WSMAconferees detail health-information exchange in directions few today can progress and challenges imagine. Health information exchange, he said, is in a period of rapid change, making it challenging to predict what it will look like several years from now. Right now in using health care data what is being exchanged is claims data along with a lim- By JEFF HUMMEL, MID, MPH,WSMA Conference Chair, Health ited set of important clinical data such as labs, medica- Care Data:Business Intelligence and Predictive Analytics for tions and information about admission and discharge Physician Practices from the hospital. 0 N FRIDAY FEBRUARY 28 a group "The task at hand focuses on exchanging continuity- of Northwest leaders in health infor- of-care records to assist in transitions of care and refer- mation technology laid out to an attentive rals," he added. "There are several market disruptors out audience how they are using their data to there that could make health information exchange for measure and manage clinical quality to reporting outcomes look very different five years from prepare for the day when value-based now compared to what many envision today." reimbursement is common.They made Joe Nichols,MD, principal, Health Data Consult- their remarks to attendees at the WSMNs day-long confer- ing, described the many ways in which the soon-to-be ence in Seattle, "Health Care Data: Business Intelligence required ICD-10 will make clinical data far more precise and Predictive Analytics for Physician Practices." for measuring and managing clinical quality.The down Fred Brodsky, MD, assistant medical director for the side of the conversion (besides the cost of practice disrup- informatics group at Group Health Cooperative in Seat- tion) will be that the quality of reported data will drop tle, delivered the keynote address. He explained how temporarily, particularly for 2014 because ICD-9 will be Group Health uses data to identify groups of patients at used until September 30, and ICD-10 will be used for increased risk for developing preventable deterioration in the remainder of the year. their health, so that providers can give them extra atten- The promise of better care through use of electronic tion and thereby avoid unnecessary costs and risks to data also carries big risks, particularly for physicians and those patients.This work, he said, requires a careful other providers who do not carefully guard protected blending of analytic work and clinical decision support health information on tools with detailed attention to workflows.The most In coming years, patients are thumb drives or lap- important thing in designing decision support, he likely to drive the exchange of tops.They could face pointed out, was to assure that it doesn't interrupt or add health information in directions severe penalties, accord- unnecessary work. "The last thing you want to do is to few today can imagine. ing to Stephen Rose, bombard providers with false alarms,"he said. JD, MBA, who A panel of information experts from public and reviewed a number of recent fines by the Office for Civil private payers shared their plans to evaluate the perfor- Rights clearly designed to get the attention of the mance of provider groups.Their provider community. `The last thing you want to common theme:The rich data set A panel of providers from Group Health,Evergreen do is to bombard providers that payers have complements clin- Medical Group, Inland Northwest Health Services,The with false alarms,' ical information in electronic Polyclinic and The Everett Clinic shared their experiences health records. Said Frederick using EHR data to prepare for value-based payment mod- Chen,MD, medical director at Regence BlueShield, "To els.They identified a number of challenges, including the understand value, you have to marry the cost data from best ways to attribute patients to providers, particularly for payers to the clinical data sets that providers have. specialty physicians; how to incorporate data from outside "Neither of us has all the information we need to the EHR into the data set so those data can be included in understand value." reporting metrics; and the relative lack of evidence that Dan Lessler, MD, chief medical officer at the Wash- specific quality management strategies actually reduce the ington State Health Care Authority, stressed the impor- total costs of care. tance of having all payers, public and private, use the Finally, Michelle Glatt,PA,MPH, operations man- same quality metrics so that providers do not have to ager for the cardiac learning and action network at Qualis continued on page 10 APRIL 2014 WSW REPORTS 6 il i 'Soto�r4)Zfir UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Y WASHINGTON,D.0, 20460 �k-11 PRCKo JUL 16 OFFICE OF AIR AND RADIATION Ms.Janet Newton President . The EMR Network P.O. Box 222 Marshfield, 'VT 05658 Dear Ms.Newton: ° This is in reply to your letter of January 31,2002,to the Environrnental.Protection Agency(E A)Administrator Whitman,in which you express your concerns about the adequacy of the Federal Communications Colmmission°s(FCC)radiofrequency(RF)radiation exposure guidelines and nonthermal effects ofradiofsequency radiation_ Another issue that you raise in your letter is the FCC's claim.that EPA shares responsibility for recommending RF radiation protection guidelines to the FCC. I hope that my reply will clarrify EPA's position with regard to these concerns. I believe that it is correct to say that there is uncertainty about whether or not current guidelines adequately` non ermaL prolonged exposures(exposures that may continue ort an internrrittent basis for many years}. The expl-ariaciri that follows is basically a summary cif statements that have been made in other EPA documents and correspondence. The guidelines currently used by the FCC were adopted by the FCC in 1996. The guidelines were recommended by EPA,with certain reservations,in a letter to Thomas P. Stanley, Chief Engineer, (mice ofEngineering and Technology,Federal Communications Commission,November 9, 2993,in response to the FCC's request for comments on their Notice of Proposed R,ulemaking(NPRM),cAlidelines for Evaluating the Environmental.Effects of Radiofrequency Radiation(enclosed). The FCC's current exposure guidelines, as well as those of the Institute ofElectrical and Electronics:Engineers(IEErE)and the Efe-ibidonal Commission On Dion-ionizing Radiation Protection, are thermally based, and do not apply to chronic,nonthermal exposure situations. They'are believed to protect warns mlury gray a cause y acute exposures that result in tissue heating or electric shock and burn. The hazard level(for frequencies generally at or greater than 3 ltitll-Iz)is based on a specific absorption dose-rate, SAP, associated with an effect Intermt Address(URL)* http;//www.spa.gov Reoyded/Rocyciab le,.printed with Vegetable 00 Rased Inks on negcled Raper(minimum 20%Postconsumer) i f 4 .2 that results from an increase in body temperature. The FCC's exposure guideline is considered rotective of effects arising from a thermal mechanism but not from ossrble mechanisms. Therefore the ever iaatxon b many that the guidelines protect human beings from harm by any or mechanisms is not justified. These,guidelines are based on findings of an adverse effect level of 4 watts per Idlogram (Wlkg)body weight. This SAR was observed in laboratory research involving acute exposures that elevated the body temperature of animals,including nonhuman primates. The exposure guidelines did not consider information that addresses nonthermal,prolonged exposures, i.e., from research showing effects with implications for possible adversity in situations involving chronic/prolonged, low-level(nonthermal)exposures. Relatively few chronic,low-level exposure studies of laboratory animals and epidemiological studies of human populations have been reported and the majority of these studies do not show obvious adverse health effects. However,there are reports that suggest that potentially adverse health effects, such as cancer, may occur. Since EPA's comments were submitted to the FCC in 1993,the number of studies reporting effects associated with bath acute and chronic low-level exposure to RF radiation has increased. While there is general, although not unanimous, agreement that the database on low-level, long-tem exposures is not sufficient to provide a basis for standards development, some contemporary guidelines state explicitly that their adverse-effect level is based on an increase in body temperature and do not claim that the exposure limits protect against both thermal and nonthermal effects. The FCC does not claim that their exposure guidelines provide protection. for exposures to which the 4 W/kg SAR basis does not apply,i.e.,exposures below the 4 Wlkg threshold level That are chronic/prolonged and anonthertnal. However,exposures that comply with the FCC's guidelines generally have been represented as"safe"by many of the RF system operators and.service providers who must comply with them, even.though there is uncertainty about possible risk from nonthermal, intermittent exposures that may continue for years. The 4 Wlkg SAR, a whole-body average,time-average dose-rate,is used to derive dose- rate and exposure limits for situations involving RF radiation exposure of a.person's entire body from a relatively remote radiating source. Most people's greatest exposures result from the use of personal communications devices that expose the head. In summary,the current exposure guidelines used by the FCC are based on the effects resulting from whole-body heating, not exposure of and effect on critical organs including the brain and the eyes. In addition,the inaxixnum permitted local sAR limit a g for critical.organs of the body is related directly to the permitted whole body average SAR(0.08 Wlkg),with no explanation given other than to limit heating. 3' I also have enclosed a letter written in June Of 1999 to W.Richard Tell, Chair,IEEE SCC28 (SC4)Risk Assessment Work Group, in which the members of the Radiofrequency Interagency Work Group(RF JAWCY)identified certain issues that they had determined needed to be addressed in order to provide a strong and credible rationale to support RF exposure guidelines. Federal health and safety agencies have not yet developed policies concerning Possible risk from long-term,nonthermal exposures. When developing exposure standards for other physical agents such as toxic substances, health risk uncertainties,with emphasis given to sensitive populations, are often considered, Incorporating information on exposure scenarios involving repeated short duration/nonthermal exposures that may continue over very long periods of time(years),with an exposed population that includes children,the elderly, and people with various debilitating physical and medical conditions, could be beneficial in delineating appropriate protective exposure guidelines. I appreciate the opportunity to be of service and trust that the infbrmation provided is helpful. If you,have fin-ther questions,my phone number is(202)554-9235 and e-mail address is hankie.norbert@e -. ov- Sincerely, orbert Hankin Center for Science and Risk Assessment Radiation Protection Division Enclosures: 1) letter to Thomas P. Stanley, Chief Engineer, office of Engineering and Technology, Federal Communications Commission,November 9, 1993,in response to the FCC's request for comments on their Notice of Proposed Rulemaking(NPRM), Guidelines for Evaluating the Environmental Effects of Radiofrequency Radiation 2) June 1999 letter to Mr.Richard Tell,Chair,IEEE SCC28(SC4)Risk Assessment Work Group from the Radiofrequency Radiation Interagency Work Group G 10 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 W 8 2002 OFFICE OF AIR AND RADIATION Janet Newton President The EMR Network P.O.Box 221 Marshfield,VT 05658 Dear Ms.Newton: Thank you for your letter of January 31,2002,to the Environmental Protection Agency Administrator Whitman,in which you express your concerns about non-thermal effects of radiofrequency(RF)radiation and the adequacy of the Federal Communications Commission's RF radiation exposure guidelines. The Administrator has asked us to critically examine the issues you bring to our attention,and we will be responding to you shortly. We appreciate your interest in the natter of non-thermal RF exposure,possible health risks,and Federal government responsibility to protect human health. Sin re , tarcino s hector Radia Protection Division i 1 P RacycladIRacyclable•Printed wfth Vegetable 0118asad inks on 1001•Recycled Paper(401 sssstcons�ttneY} BEFORE THE PUBLIC UTILITIES COMMISSION OF THE, STATE OF CALIFORNIA Application of Pacific Gas and Electric Company for Approval of Modifications to Application 11-03-014 its Sinat-tMetefrm Program and Increased (Filed March 24, 2011) Revenue Requirements to Recover the Costs of the Modifications. (U39M) (NOT CONSOLIDATED) Application of Utility Consumers' Action Application 11-03-015 Network for Modification of (Filed March 24, 2011) Decision 07-04-043 so as to Not Force Residential Customers to Use Smart.Meters. (NOT CONSOLIDATED) Application of the County of Santa Barbara, the Consumers Power Alliance, et al For Application 11-07-020 Modification Of D.08-09-039 And A (Filed July 26, 2011) Commission Order Requiring Southern California Edison Company (U338E) To File (NOT CONSOLIDATED) An Application For Approval Of A Smart Meter Opt-Out Plan. RESPONSE OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E) ON THE ADMINISTRATIVE LAW JUDGE'S RULING SEEKING CLARIFICATION ALLEN K. TRIAL 101 Ash Street, HQ-12 San Diego, California 92101 Telephone: (619) 699-5162 Facsimile: (619) 699-5027 E-mail: Attorney for SAN DIEGO GAS & ELECTRIC COMPANY (November 1, 2011 #260675 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Pacific Gas and Electric Company for Approval of Modifications to Application 11-03-014 its SniartMeter"m Program and Increased (Filed March 24, 2011) Revenue Requirements to Recover the Costs of the Modifications. (U39M) (NOT CONSOLIDATED) Application of Utility Consumers'Action Application 11-03-015 Network for Modification of (Filed March 24, 2011) Decision 07-04-043 so as to Not Force Residential Customers to Use Smart Meters. (NOT CONSOLIDATED) Application of the County of Santa Barbara, the Consumers Power Alliance, et a] For Application 11-07-020 Modification Of D.08-09-039 And A (Filed July 26,2011) Commission Order Requiring Southern California Edison Company (U338E) To File (NOT CONSOLIDATED) An Application For Approval Of A Smart Meter Opt-Out Plan. RESPONSE OF SAN DIEGO GAS & ELECTRIC COMPANY (U 902 E) ON THE ADMINISTRATIVE LAW JUDGE'S RULING SEEKING CLARIFICATION 1. INTRODUCTION In compliance with the Ruling of Administrative Law Judge Any C. Yip-Kikugawa. ("Ruling"), dated October 1.8, 2011, in the above-noted dockets, Sall Diego Gas &Electric Company ("SDG&E")hereby provides its response to the various questions identified in the Ruling. Specifically, the Ruling provides that PG&E, SDG&E, SCE and SoCalGas shall, respond to the following questions: 1. What is an average duration (in seconds)that a residential smart meter transmits in a 24 hour period? a. [Jow is this average computed or measured? 1 2. How many times in total (average and maximum) iousmart meter scheduled to transmit during u24-boocperiod? a. How many of those times (average and maximum) are to transmit electric usage iubanoutioo? b. flow many o[those times (average and zuuximond are for other pnrpoaum? What are\bomc other purposes'? Please specify number of times (average and zuuxioxuru)by\ype/cotegmzy o[truoaodouinn. 3. Under what scenarios does a meter transmit outside of the daily schedule, i.e., unscheduled transmission such as on-demand read, tatuper/theft alert, last gasp, firmware upgrade etc.? 4. Typically,how much of the communication between the customer's roo1cz and the utility iu unscheduled vs. scheduled? 5. Are there any other factors that gu into determining duration and/or frequency ofmeter |rauuodomi000 (e.g., ifu meter can't access the network when it's trying to send data, type ofu meter cto.)7 If yes, please identify these factors. 6. What is the amount ofRF ozuinwion at the source when u meter ia transmitting data (instantaneous maximum peak level, averaged over 3Uodon1cu)? 7. Does the amount of RF emission vary depending on duration of transmission/volume of data being sent? For example, are E-F emissions higher when there is u larger volume of data tubutroouohbod? B. Are there any other factors that impact the uuzoontufKFemissions? [t so,please identify the factor(s) and its impact onRF unJaaiuuo. V. Is there Ry oodsoioo p/beo the meter ia not bunaznibiu&? If yes, what iu the amount uf Rycooiasion? ]O. Iatbure a difference in the amount of RF emissions for a wireless smart meter with the radio off and u smart meter with the radio out'? If yes, what is that difference and how ia it calculated? ll. Is there a difference in the amount ofBF enuimaioua for u wireless smart zno1er with the radio off and an analog meter? If yes, what is that difference and how is it calculated?' In summary,the data within our Response below establishes that, on average, uo0nuuWuy residential meter's mdk,(s) will transmit By approximately one minoteu day and that these meters are tested and validated tobe FCC compliant. H. RESPONSE l. What imuo average duration (in seconds) that o residential smart meter transmits iou %4-bvorperiod? • The average OpouVVuy residential meter's 900k4BzK-FL/\N radio will bonanJL u(u(u| of 53 seconds in a 24-hour period. This ioo]ud*u daily scheduled reads,unscheduled activities and a|l network overhead. • The DponVVayroeideutiul onotcr`u 2.4(}l1z ZiAhee radio uonoouuiou|eo with ntborUAN (Home Area Network) devices and 11cou Gas Modules. The table below shows the measured transmission times for anidle Zighoc radio and Zigbcoradio with one o[two sample devices joined tothe zoc1or. We expect that, for current deployments, the average meter will have either zero (id)o} nr one ll/\N device attached to i1. Duration of tr.ansmission in Duty Cycle la 24-ho criod w The [tnzu Guy Modules are directly linked to u local electric meter via the Ziu600 radio. They are not part of the IYI./\N Mesh network and they transmit their data ouo set schedule (twice u day for profile data, consumption in{bomudooaud lO tiouoa uduy for network connectivity oozuuzonioo1iona). The gas modules transmit u total of less than 100 milliseconds iuo24-boozperiod. u. How lm this average computed ormeasured? � The 90OMHzKFL/\N average transmission duration was derived from empirical data collected at a large, representative OpenWay deployment. The total transmit time for unxozpleo[over 68OO zno1uro was cmDeo1od and the average was calculated. The 24-bnor period was rcp,eouu1otivo o[normal network.operations with daily reads, unscheduled events 3 (alarms, alerts, interactive reads, etc.), afirniware download and network overhead. • The average Zigbee transmission is based on measurements taken at Itron labs. Itron has estimated a maximum 1%transmission duty cycle for the 2.4GHz Zigbee radio based on up to 8 devices being attached to a single meter. Current deployiiients typically allocate zero or one ZigBee device per OpenWay meter. • The gas module transmission duty cycle is based upon defined daily interval data which includes profile data, consumption information, and communication handshakes. Response provided by: Simon Pontin---Itron's Chief Technology Office 2. How many times in total (average and maximum) is a smart meter scheduled to transmit during a 24-hour period? During a 24-hr period, SDG&E has 3 scheduled interrogations: • 12:00A.M.—This interrogation retrieves electric load profile data and electric event history for the previous 8 hours of usage. This interrogation also retrieves the time-stamped.midnight electric register data and the time-starnped gas 7:00 A.M. and 10:OOP.M. register read data(HAN data). • 10:00 A.M. —(except Saturdays). This interrogation retrieves the Current electric register data and the most recent time-stamped gas (7:00 A.M and 10:00P.M.) register read data(HAN data). This interrogation also retrieves the electric event history for the previous 10 hours. • 4:00 P.m--This interrogation retrieves the current electric register data and the most recent time-stamped gas (7:00 A.M and 10:00P.M) register read data(HAN data), This interrogation also retrieves the electric load profile and the electric event history for the previous 16 hours. Response provided by: Charlie Snyder—SDG&E Smart Meter Program Manager 4 Other factors bnoludu - * period, 8DG&E collects network statistics— ��ob This vvuck|yb�eomgu1ioucoOec1a oe��orkcoo��xdux for all electric meters. Response provided by: Charlie Snyder---80G/bB Smart Meter Program Manager • With uhierarchical cell structure, meters will relay upstream and downstream traffic within the iUF LAN mesh. The total number of transmissions will include the scheduled reads, on-demand reads, a|onon/ulerts along with the network traffic needed for command and control (syucbronizo1ioo` security, dukoiutegTityooddy0000ic networkrcoi|ieouy). • Based onthis interrogation schedule, (2 load profile reads +one register read+one event read per duy), the total transmissions for uu [)nonvvay meter over u24 hour period are: • The 0 of transmissions z* uuur period is —1 268 (less than I tinie/minute) • The irtaxinmin number o[bonxcniumi000iuu24boor period iu times minute or—once, .3 seconds) o 1|op/nvn/, 97% o[the meters in this random sample transmitted less than 2500 dnuua in u24-bonrperiod. a. How many nf those times (average and maximum) are to transmit electric usage information? wAll three scheduled interrogations discussed iu the 24-booz period above transmit electric usage information. b. How many u[those times (average and maximum) are for other purposes? What are those other purposes? • On Saturday only at l0:0O/t,M an interrogation job is submitted to ynU back network connectivity a1u1iatioo for all electric nooturn. * The balance o[the transmissions ia for network command and control: synchronization, security,data integrity and dvu000iooctvvorkresiliency. o. Please specify number of times (average and maximum) by type/category of transmission? 5 • Deiu \od of the type/category of transmissions has not been One data point from the gathered field data in tbut, on average,the segmentation bokv000meterdutotrxuonnouioum (achedu|od and/or on-dccunnd) and network command and control (myncbzonizudon, security, data inVCg7ity and dynamic network resiliency) iu expected io ho: o Trunau' oni000 o[meter data: 10Y6 o Transmissions for network oonmiuud/uuo1rn|: 90% w Based upon the interrogation schedule above and this expected breakdown iu message types, the following number o[transmissions per message type per 24 hour period can be expected. o Transmission o[Meter Data— a- Average= l27 b. Max 9 o Transmission ofCommand 6t Control a. Average = 1l43 b. M.ax= 23 Response provided by: Simon Pootio—|bou`y Chief Technology Office Response provided by: CbaoliuSuydo/—SDG&E Soum1 Meter Program Manager 3. Under what scenarios does a meter transmit outside of the daily schedule,i.e., unscheduled transmission such as on-demand read,tamper/theft alert,last gasp, firmware upgrade otc,Y * Exceptions, by definition, are transmitted when they occur io aouc1cr, if the zuctcr is removed tiom the socket by oo electrician io do customer work, the meter will transmit PO0 (power off notification) nuoonugco' when its plugged back ioit will transmit n removal tamper, inversion tamper, yDN(power restore notification) oncnmo&u. 0D(l8iBbuo 7 exception messages defined ino typical residential meter(Coofigura1iou Error, Inversion Tamper, Load Control Opt Out, Power]Down, Power Up,Removal Tamper, Reverse Rotation). o ybzuwuze Download: Firmware downloads over the RE,[/\N are typically done once o year(reflecting major system releases). The firmware download process ioubackground activity for the network typically spanning from 12 hours to 1.2 6 . days (depending on the number/type u[firmware modules downloaded). o f a lU inesh network equires that meters maintain coi to ensure the stability, self healing and integrity of the network. A good exan-iple of this is timing synchronization vvbcro neighbor meters time- synchronization packets lb to ensure all o[the devices in the network are oyuuhrouizodfbz{bno slot usage. Time-synchronization packets Response provided by: Simon Poutio—lbou`a Chief Technology 0O5uc 4. Typically, oop/ much o{tbc communication bmfpvcuo the customer's meter and the utility im unscheduled vs. scheduled? 8uocd on how SDG&c8boa scheduled their read interrogations, described in 0.2. above,Itron estimates the communication between the customer's meter and the utility io approximately 95Y6 oubcdolnd. The 5% is attributed to ad-boc contingency read request for meter mitigation and.firmware downloads. Rrmyooum provided by: Simon Pou1iu-1trun`o Chief Technology OIfioo Response provided by: Charlie Snyder—80G8cE Smart Meter Pro�raouK�anegcz 5. Are there any other factors that go into determining duration and/or frequency of meter transmissions (e.g., if a meter can't access the network when it's trying to send data,type n[m meter etc.)YIf yes, please identify these factors. � When meters first ioin a network,they go tbrouoh u sequence of1hrce discovery beaconing phases to find the network and appropriate neighbor devices io sponsor them ooto the network. Each of the phases are described below: o Pbouo-lo[ : ~9 minute duration, l5h cycles ofl.O4 seconds of beaconing(20ozxbcuuou on each of52 »bouue|o) followed by2.5 seconds of listening (no tzauaodoainos). o i duration, cycles [l 04 seconds of beaconingT6T0—W—eT5y_32�5 �e�onds of listening. 7 0 Phase-If)i overv: lZemaiiiing time untitit joins the network, C61-111nusous cycles of 1.04 seconds of beaconing followed by I ro-u-027,777n'c"hs of listening. Once on the network, it will behave as outlined above. Response provided by: Simon Pontin--Itron's Chief Technology Office 6. What is the amount of RF emission at the source when a meter is transmitting data (instantaneous maximum peak level, averaged over 30 minutes)? Note that the limits for Maximum Permissible Exposure (MPE) established by the FCC accounts for a 20cm distance from the source to the measurement point. The transmitted power for the Q"ULVay meters deployed in the C, i - �' set(HW2.0,FCC ID: SK9AMI-4) without this 20cm distance (at the antenna source) are: o R-FLAN Q00„ Conducted Peak Transmitted Power: 2�j ni�illjWatts Antenna Gain: 1.66 times (2.2 dB) Total instantaneous Peak Transmitted Power: 443.7 nulliWatts With 1%duty cycle over 30 minute interval: 4.4 milliWatts o Zigbee (2�A�Gljz z .Peak riilli� Conduc Peak Transmitted Power: 8!�2.6�, W, Anteima Gain: 2.75 times (4.4 dB) Total instantaneous Peak Transmitted Power: ;ZZ._5 ma—L-W-4s With I%duty cycle over 30 minute interval: 2.3 milliWatts NOTE: The Iransinittedpowerfi)r all Itron meters is ea tured in reporu oi?RFExImsure available at the T'CCiteb site., Use Grantee Code; SK9, Product Coale;AM]-4. Note that while this question asks for emission data, FCC publication OET65 identifies a distance of 20 centimeters (<8 inches) "where reliable field measurements to determine adherence to M.PEs [Maximum Permissible Exposures] can be made." As noted in Q(2)(c), the amount of time transmitting data is approximately 10% of the total transmit time. Therefore, the following emission values have been calculated using a duty cycle of 0.1% (1% duty cycle for all transmissions x M allocated.for data transmissions), evaluated at the 20- centimeter distance, and expressed in terms of power density. o RFLAN: Power Density at 20cm=443.7mW/4 n 202 =0.088 mW/cm2 x 0,001 = 0.00009 rnW/cm2, or 0.0144% of the FCC's MPE guidelines for general public at 20 cm. 8 o Zigbee: Power Density at 20em=227.5mW/4 7r 202 =0.045 mW/crn2 x 0,001 =0.00005 mW/cm 2, or 0.0045%of the FCC's MPE guidelines for general public at 20 ern Response provided by: Simon Pontin—Itron's Chief Technology Office • In a sampling of RF LAN transmission activity of its active meters, SDG&E has observed in average duty cycle of 0.06%, and a peak duty cycle of 0.58%. These figures include all transmissions. Factoring in the 10% allocation for data transmission noted by Itron above, the average data transmission mit c cle would be 0.0061Y0, and the pea data transmission "v 7) and ...`p c �,, �c � ��c Lu" D " ""'Y or RF LAN emissions a is" v(o, uty Ljl( ) 05 01M. Calculated values o'rF ��ei �issions� cycle be (0.058%. Cal using these data transmission duty cycle figures would be proportionately lower than the values provided by Itron (above)using a 0.1%duty cycle. For additional discussion of the SDG&E smart meter system duty cycle, see pages 12-9 and 12-10 of the report An Investigation q1'1?adiofreqz4e;1cv Melds Associated with the Itron Smart.Meter,published in December 2010 by the Electric Power Research Institute. This report is available at http://ii,iy.epri.com/12oilal/server.pt?Abstract ld=000000000001021126. Response provided by: Jim Turman—Project Manager—SDG&E Safety Services 7. Does the amount of RF emission vary depending on duration of transmission/volume of data being sent? For example, are RF emissions higher when there is a larger volume of data to be transmitted? No, the transmitted power is fixed at the levels shown in the response to question#6. They do not vary due to duration or volurne of data sent. Response provided by: Simon Pontin—Itron's Chief Technology Office 8. Are there any other factors that impact the amount of RF emissions? If so, please identify the factor(s) and its impact on RF emissions. No. The factors impacting RF emissions have been discussed above. Response provided by: Simon Pontin—Itron's Chief Technology Office 9. Is there RF emissions when the meter is not transmitting? If yes, what is the amount of RF emission? 9 - PYes All solid state electronic devices emit RF signals due to processor c ock si rial , d ower su. lies such as te evisions, D D players, cell phones, computers and solid state meters), These types of unintentional "^ signals "°`^^~^~~ set ~/ ~~^ ~~ ^~ ~~ ~`d~ `-- ---- --g------- Title 47` Part l5N7CF& l5l' Subpart B` Class D Devices. Dmn`o products are tested and validated tubo below the limit set and iobr compliant with these FCC requirements, ` Response provided by: Simon Pondn—Dzmo`a Chief Technology Office 10. Is there apdroIomw smart meter with [ a t? If yes,what imthat difference and how imi{calculated? � u. YJbentbxrodioioo/Titdoeonotkuuaud1. 1�bonnioteodmuu| I[P ~�~signals from the meter's solid state electronics will remain Virtually unchanged with the radio turned off orremoved. Response provided by: Simon Pootiu—Ibon"u Chief Technology Office 11. Is there u Jkffercooc io the amount nfRYr emissions for uwireless smart meter with the radio off and an analog meter? If yes, what is that difference and how is it calculated? As smart nuotuzx are solid state electronic devices and analog meters are o}eoko-rnagnodc devices their behavior iw different. /\comparison has not been undertaken uo they are so different; however, both devices comply with the ouzoe FCC regulations: Code of Federal Regulations, Title 47, Part l5 (47CPRl5), Subpart B` Class BDevices. Response provided by: Simon Poobu— )tron`x Chief Technology Office Respectfully submitted this l" day of November 2011. By: Al Hen K. Trial ALLEN .K. TRIAL 101 Ash Street, IJQ-12 San.Diego, California 92101 Telephone: (619) 699-5162 Facsimile: (619) 699-5027 ATrial.�rs4>>l.i�>>�1�itilitiew.c,c�r71 Attorney for SAN DIEGO GAS & ELECTRIC COMPANY 1.1 s Smart Meter Study-- Southern California llttp://�Nlww.createhealtl>yhomes.coin/smart_meter_study.php ", r r F %` ', ' / l /'f lfi✓ �1/�/ aiNr�%h✓ pA2 ✓ ,y�✓719 51,E ? li�i �1 �✓( � � ✓( � �(� ✓�1t:L � �, ✓ r � � T1 ���411 ' �✓,�f ✓ yG SFr [l t +/ r� ✓I w t.,,a,v'�,s Y ro �4�✓17''pdJ r ,� ��n'"1"9Nk t ✓ �.99 � / � ✓.- � � l�/�.;l ryi"G�l��,ww�..,rv✓ .r rr 1 i 'If�'„�l S?,W�unu / f e/i ✓ v r I j lad r n � � i � � ', .n /'��' .✓>F� �7 ✓ � ✓ / ✓l. t r� � �l is �✓�✓i f'r"'vw ✓ 9 ,y, Or ✓�f���✓d fF��Yh�7/+J�✓ §eji�/i✓ o u✓ r ) 4 1 "!�Sw.'",.,„. ;� ✓ � 5; Ir��{ ����✓list pra✓yrp z'��lj�C✓✓ % � i y/ l p i/ , '",""G ' rp2,.l U �✓✓/,I/G, l , err Pi � s(e�„��yyyIlI ti e� / ,(� rqy ✓r y gM�g�y y p �(µµ�ap pew# w y(p pg��a ",', / l 4, ���II.I�, , �N J.G��rv���,1P 1�ll��Y� � ✓J'�(2f f�J�+f / A.:F+;MC�f��il�9N'Y�i�is�'C^'"b/ 4+m;A GE'WM14✓MT' .,,.,,,w,r ,� s.,�✓', .f),;�mF�,.. ',.,,,,,��,f,<"r.,. ,✓, N,,r, o,,.. Home Study to Determine the Presence of Dirty Electricity Services from Smart Electric Meters in Southern California About Reports exist of dirty electricity from switched mode power supplies in smart electric meters in Lecture Schedule the Pacific Gas&Electric(PG&E) service area of Northern and Central California (see below). In an effort to try to document the existence of dirty electricity from the brands of smart meters Comments from used by electric utilities in Southern California, I conducted a stud of over 20 homes in Ma and Clients Y- y June of 2012. The results of that study, along with oscilloscope-tracings, are presented below. Articles on EMFs This page last updated September 12, 2013. EMF Lecture Slides Update 9112/13: In an effort to personally document reports of significantly elevated radio and Video frequency power density levels as well as to personally document the presence of dirty electricity from smart meters in the PG&E service area, I travelled in July 2012 to two towns just north of Cell Phone and Radio San Luis Obispo in Central California seed by PG&E. (To see photos and information about radio Frequency Risks frequency measurements taken at these three homes, click here.) Smart Meters Here are my oscilloscope tracings of circuits in three homes with Landys+Gyr smart electric meters and one home with a GE analog electric meter in these two towns. Readings were taken Tips for a on July 29 and July 30, 2012. Healthy Home A detailed explanation of the equipment and methodology used to obtain these oscilloscope Precautionary tracings is presented further down on this page. Principle The first tracing shows the oscilloscope tracing at a home with a Landys+Gyr smart meter in Steps to Protect Moro Bay taken on July 29th. Dimmer switches, which are a source themselves of dirty Yourself from Cell electricity, were turned off. Notice the voltage transient on the portion of the sine wave preceding Phone Frequencies each peak,which may, indeed, be due to the Landys+Gyr smart meter(although I was not able to seek out and isolate other possible sources of dirty electricity in the home): Car Rooftop Cell Phone Antennas ----------------------------- --------- Safer Use of i c .. Computers Healthy Lighting 9k��%w '41 f �q r6 ar Cj M A P3 Choices ... {'v)E Te � EMF Meters and 1C i Instruments ! /" Cellphone Radiation Guide ............. Position Paper on Cell — -----------, --- ------ ------ -------------------- --------- -- -- Phone Chips, Pendants and Home d1:3500100rnV (1?341 s)1 1755.63, d 16644— IMI;01_H Harmonizers The tracing below is a closeup of the transient, which appears to have a fundamental frequency of 17 kHz and a size of 1.3 Volts in 60 microSeconds, for a slew rate of 21,600 V/Sec: Position Paper on the Proper Use of _ _ .....,. .,. _ Earthing and Grounding Pads ----- -- - ------- -------------- --- -- -- Building Biology Safe _ Exposure Guidelines F— Video and Audio Clips on Cell Phone Risks ^t= 1 of 32 5/11/14 Pew: Hialeah Meter Co. Hi, Dr. Eloise. Refurbished meters are available through Hialeah Meter, info (along with e-mails from Eddie): Hialeah Meter Co. 450 W. 28th Street Hialeah, FL 33010, Bay #4 Phone: 305-887-8931 e-mail: Eddie@hialeahmeter.com website: hialeahmetercom I also just spoke with Dennis Orcutt, who's in charge of all meters for GE, to confirm if they sell directly to customers. They do not. He said Hialeah is the best, but also mentioned Vision Metering in York, SC. I'll look that up and include it in this e-mail. Vision Metering LLC 7 Ross Cannon Street York, SC 29745 Phone: 803-628-0035 e-mail to order: Katie@visionmetering.com website: vision metering.com Katie just confirmed that, yes, they do well refurbished analog meters, what they call "mechanical meters". Price: $15.00 meter. Hope this helps. Please let me know if there's anything else I can do. Helen On Friday, May 16, 2014 8:33 AM, Eddie <Eddie@hialeahmeter.com>wrote: Good Morning Helen, You're very welcome. Feel free to contact me if you have any other questions or when ever you're ready to place the order. 1 of 4 5/19/14 Fw: Hialeah Meter Co. Iza S-02S-20023E-LCD 200 amps 240 volts ONLY! (cannot be converted to 120 volts) $15.00 discount K:11 S-02S-20023E 200 amps 120-240 volts ( it can be converted to 120 volts) $15.00 discount K; S-02S-20023 200 amps 120-240 volts ( it can be converted to 120 volts) $15.00 Feel free to contact me if you have any questions or concerns at 305-887-8931. Thank you, Enjoy the rest of your day! Hialeah Meter Co. 3 of 4 5/19/14 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington April 8, 2014 CALL TO ORDER SPECIAL MEETING A Special City Council meeting was called to coincide with the Utility Advisory Committee meeting. Being no quorum present,a Special City Council meeting was not conducted. ROLL CALL Members Present: Councilmembers Brach,Gase and Whetham. Members Absent: Mayor Di Guilio,Deputy Mayor Downie and Councilmembers Collins and Kidd. Dan Di Guilio,Mayor Janessa Hurd,City Clerk E - 1 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington April 22, 2014 CALL TO ORDER SPECIAL MEETING: Mayor Di Guilio called the special meeting of the Port Angeles City Council to order at 5:00 p.m. ROLL CALL: Members Present: Mayor Di Guilio, Deputy Mayor Downie, Councilmembers Bruch, Collins, Kidd, Gase and Whetham. Members Absent: None. Staff Present: City Manager McKeen, Attorney Bloor, Clerk Hurd, C. Fulton, B. Olson, N. West, P. Lusk, T. McCabe and M.Abed. WORKSESSION: 1. Utility Policy and Rate Allocation Review City Manager McKeen introduced Angie Sanchez Virnoche,Principal with FCS Group,the firm hired by the City to conduct a comprehensive utility rate analysis. Principal Virnoche conducted a PowerPoint presentation regarding utility policy and rate allocations. Chief Financial Officer Olson spoke regarding the Long Range Financial Plan and how it relates to utility policy and rate allocations. Council discussion followed. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 7:11 p.m. Dan Di Guilio,Mayor Janessa Hurd,City Clerk E - 2 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington April 29, 2014 CALL TO ORDER SPECIAL MEETING: Mayor Di Guilio called the special meeting of the Port Angeles City Council to order at 4:30 p.m. ROLL CALL: Members Present: Mayor Di Guilio, Deputy Mayor Downie, Councilmembers Bruch, Collins [via speakerphone], Kidd,Gase and Whetham. Members Absent:None. Staff Present: City Manager McKeen, Assistant City Attorney Greenwood, Clerk Hurd, C. Delikat, K. Dubuc, C. Fulton,T. Gallagher,B. Olson,N.West,B. Coons and A. Gates. EXECUTIVE SESSION: Based on input from Assistant City Attorney Greenwood, Mayor Di Guilio announced the need for an Executive Session, under the authority of RCW 42.30.110(1)(i) for the purpose of discussing potential litigation with legal counsel,for approximately 25 minutes. The Executive Session convened at 4:35 p.m. RETURN TO OPEN SESSION: The Executive Session concluded at 5:02 p.m.No action was taken. CONSENT AGENDA: 1. Recreation and Conservation Funding office(RCO)Grant Resolutions Community and Economic Development Director West requested Council approve resolutions to support staff exploring a variety of grant funding for Civic Field, City Pier floats and the Waterfront and Transportation Improvement Plan(WTIP). Council discussion followed. It was moved by Bruch and seconded by Gase to: Approve the attached resolutions authorizing submission of the applications for grant funding assistance from the Recreation and Conservation Office. RESOLUTION NO. 04-14 This is a resolution that authorizes submitting application(s)for grant funding assistance for Aquatic Lands Enhancement Account project(s)to the Recreation and Conservation Office as provided in Revised Code of Washington 79.105.150,Washington Administrative Code 286,and subsequent legislative action. RESOLUTION NO. 05-14 This is a resolution that authorizes submitting application(s)for grant funding assistance for Boating Infrastructure Grant project(s)to the Recreation and Conservation Office as provided in 50 Code of Federal Regulations(CFR) Part 86,Boating Infrastructure Grant Program:Final Rule; WAC 286 and subsequent Legislative action. RESOLUTION NO. 06-14 This is a resolution that authorizes submitting application(s)for grant funding assistance for Land and Water Conservation Fund project(s)to the Recreation and Conservation Office as provided in Title 16,USC,Chapter 4601-4 as amended;WAC 286 and subsequent Legislative action. E - 3 PORT ANGELES SPECIAL CITY COUNCIL MEETING—APRIL 29, 2014 RESOLUTION NO. 07-14 This is a resolution that authorizes submitting application(s)for grant funding assistance for Washington Wildlife and Recreation Program project(s)to the Recreation and Conservation Office as provided in Chapter 79A.15 RCW, Acquisition of habitat conservation and outdoor recreation lands,WAC 286 and subsequent Legislative action. RESOLUTION NO. 08-14 This resolution authorizes the submittal of application(s)for grant funding assistance for Boating Facilities Program project(s)to the Recreation and Conservation Office as provided in Chapter 79A.25 RCW Boating Facilities Program,WAC 286 and subsequent Legislative action. Motion carried 7-0. WORKSESSION: 1. Long Range Financial Plan City Manager McKeen opened the City Council Worksession on the Long Range Financial Plan,providing a brief history regarding the development of the plan. Director West spoke regarding the Vision Statement development process. Council discussion followed. Chief Financial Officer Olson conducted a PowerPoint presentation regarding priority setting in the Long Range Financial Plan. Council discussion followed. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 7:00 p.m. Dan Di Guilio,Mayor Janessa Hurd,City Clerk Page 2 of 2 E - 4 CITY COUNCIL MEETING Port Angeles, Washington May 6, 2014 CALL TO ORDER SPECIAL MEETING: Mayor Di Guilio called the special meeting of the Port Angeles City Council to order at 5:04 p.m. ROLL CALL: Members Present:Mayor Di Guilio,Deputy Mayor Downie,Councilmembers Bruch, Collins,Gase and Whetham. Members Absent: Councilmember Kidd. Staff Present: City Manager McKeen,Attorney Bloor,Clerk Hurd,C.Fulton and N.West. EXECUTIVE SESSION: Based on input from Attorney Bloor, Mayor Di Guilio announced the need for an Executive Session, under the authority of RCW 42.30.110(1)(i) for the purpose of discussing potential litigation with legal counsel, for approximately 40 minutes. The Executive Session convened at 5:04 p.m. RETURN TO OPEN SESSION: The Executive Session concluded at 5:41 p.m.No action was taken. ADJOURNMENT: Mayor Di Guilio adjourned the Special Meeting at 5:41p.m. CALL TO ORDER-REGULAR MEETING: Mayor Di Guilio called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. ROLL CALL: Members Present:Mayor Di Guilio,Deputy Mayor Downie,Councilmembers Bruch, Collins,Gase and Whetham. Members Absent: Councilmember Kidd. Staff Present: City Manager McKeen, Attorney Bloor, Clerk Hurd, B. Olson, G. Cutler, N. West, T. Gallagher, K. Dubuc,C.Delikat,D.Bellamente and R.Hostetler. It was moved by Collins and seconded by Downie to: Excuse Councilmember Kidd from the May 6,2014,City Council meeting. Motion carried 6-0. PLEDGE OF ALLEGIANCE: Mayor Di Guilio led the Pledge of Allegiance to the Flag CEREMONIAL MATTERS,PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Washington Parks&Recreation Association Award—Janet Young This agenda item was cancelled. 2. Older Americans Month Proclamation- Mayor Di Guilio presented Senior Center Manager Bellamente, with a proclamation recognizing May 2014, as Older Americans Month. 3. Public Works Week Mayor Di Guilio presented Public Works & Utilities Director Fulton with a proclamation recognizing May 18-24, 2014,as National Public Works Week. E - 5 PORT ANGELES CITY COUNCIL MEETING—May 6, 2014 4. Native American Indian Day Mayor Di Guilio presented Melissa Gilman,Lower Elwha Klallam Tribal member,with a proclamation recognizing May 13,2014,as Native American Indian Day. PUBLIC COMMENT: Eloise Kailin,Judi Hangartner,Peter Ripley,Harvey Kailin,Virginia Leinart and Cindy Turney spoke against smart meters and the City's wireless system. Peter Ripley encouraged Council to attend an upcoming presentation by Columnist Michelle Malkin. James Creelman urged Council to postpone the approval of the Landfill Bluff Stabilization construction contract because of a possibility of private investment into the Landfill. Wendy Buck and Ron Johnston spoke against the City imposing a moratorium on medical marijuana dispensaries. LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS as determined by City Manager or Councilmember- Councilmember Whetham requested a discussion regarding Civic Field repairs. Manager McKeen stated the Landfill Bluff Construction Project agenda item needed to be pulled from the agenda. Public Works and Utilities Director Fulton explained the City received a protest letter from the second low bidder challenging inconsistencies in the low bidder's proposal. He stated the City had thoroughly reviewed the letter and proposal and determined the items did not constitute stopping the construction award, however, he also explained the City needed to wait two business days to award the contract so the agenda item would be brought back to the City Council Special Meeting on May 13,2014. Council discussion followed. CONSENT AGENDA: Councilmember Whetham requested the Interlocal Agreement with Olympic Memorial Hospital District be pulled from the Consent Agenda for discussion. Councilmember Gase recused himself from voting on the Consent Agenda due to a conflict of interest with Consent Agenda item Feiro Marine Life Center / NOAA Olympic Coast National Marine Sanctuary — Revisions to Memorandum of Agreement. Mayor Di Guilio read the Consent Agenda. Council discussion followed. It was moved by Bruch and seconded by Downie to approve the Consent Agenda to include: 1. City Council Minutes March l ltnand April 15th 2014,as amended 2. Expenditure Approval List:4/5/2014 to 4/18/2014 for$2,246,847.14 3. Purchase of 4WD Flatbed Truck l Award and authorize the City Manager to sign a contract and appropriate documents to purchase the 4WD Flatbed Truckfrom Ruddell Auto Mall, Port Angeles, WA 4. Port Angeles Forward Appointments l Appoint George Bergner, Mark Ohman and Mike Edwards 5. Board of Adjustment l Appoint Paul Roess 6. Board of Ethics l Appoint Jerry Dean 7. Surplus Vehicles&Equipment/Declare list of vehicles and equipment as surplus and authorize Director of Public Works and Utilities to dispose of them in the most efficient manner 8. City Clerk,Police Department and Mechanical Remodel—Project No.PDO1-2011 and IT03-2011 — Professional Services Agreement with Lindberg and Smith Architects,Amendment 3/Approve and Authorize the City Manager to sign Amendment No. 3 to the Architectural Services agreement with Lindberg and Smith Architects, in the amount not to exceed$40,846, which increases the maximum compensation under the agreementfor the projectfrom$60,500 to$101,346, and to extend the contract time to December 31, 2014, and to make minor modifications to the agreement, if necessary 9. Feiro Marine Life Center/NOAA Olympic Coast National Marine Sanctuary—Revisions to Memorandum of Agreement l Approve revisions to the Memorandum of Agreement and authorize City Manager to make minor modifications Page 2 of 6 E - 6 PORT ANGELES CITY COUNCIL MEETING—May 6, 2014 Motion carried 5-0,with Councilmember Gase abstaining from the vote. 10. Interlocal Agreement with Olympic Memorial Hospital District/Approve and authorize the City Manager to sign an Interlocal Agreement with OMHDistrict to transfer ownership of the District's medium voltage electrical system to the City, and to make minor modifications to the agreement, if necessary Councilmember Whetham requested additional information regarding the issue and asked the agenda item be returned to the Utility Advisory Committee for recommendation. It was moved by Whetham and seconded by Bruch to: Send the agenda item, Interlocal Agreement with Olympic Memorial Hospital District, to the Utility Advisory Committee for a recommendation to City Council. Motion carried 6-0, PUBLIC HEARINGS—OTHER: 1. Financial Policy Revisions Manager McKeen introduced the agenda item and provided a brief history regarding the Long Range Financial Plan process.He stated part of the process included financial policy revisions. Chief Financial Officer Olson presented the financial policy revisions and described the steps taken to consolidate the financial policies into one document. Council discussion followed. Mayor Di Guilio opened the public hearing. Gretchen Delaney,216 W. 14"'St,inquired as to whether City Council Worksessions are open to the public. Peter Ripley, 114 E. 61h St.,spoke in opposition to the City's use of consultants. Mayor Di Guilio continued the public hearing to the May 20,2014,City Council meeting. Mayor Di Guilio conducted a first reading of the resolution by title,entitled, A RESOLUTION A RESOLUTION of the City Council of the City of Port Angeles, Washington, adopting Financial Policies for the City of Port Angeles. ORDINANCES NOT REQUIRING PUBLIC HEARINGS: 1. Utility Billing Ordinance Amendment Customer Service Manager Hostetler stated no changes had been made since the first reading of the proposed ordinance. Council discussion followed. Mayor Di Guilio conducted a second reading of the ordinance by title,entitled, ORDINANCE NO.3501 AN ORDINANCE of the City of Port Angeles,Washington making changes to Chapters 3.64 and 13.16 of the Port Angeles Municipal Code relating to utility billing. It was moved by Collins and seconded by Bruch to: Adopt the ordinance as read by title. Motion carried 6-0. Page 3 of 6 E - 7 PORT ANGELES CITY COUNCIL MEETING—May 6, 2014 2. Port Angeles Forward Committee Ordinance Amendment Community and Economic Development Director West explained the proposed ordinance allowed for an easier transition for outside agencies to provide representatives to participate in the Port Angeles Forward Committee. Council discussion followed. Mayor Di Guilio conducted a first reading of the ordinance by title,entitled, ORDINANCE NO. AN ORDINANCE of the City of Port Angeles,Washington,amending Chapter 2.40 of the Port Angeles Municipal Code relating to the Port Angeles Forward Committee. 3. Rezone Proposal—REZ 14-01 —Phillips Et al—Race Street between 4ti,/5tn Streets Director West discussed the three properties located on Race Street between 4th and 5th Streets.He stated a rezone was conducted back in 2006 for most of the Race Street corridor;however these properties declined the rezone at that time.Now,the properties owners are in favor of a rezone,as well as City staff,and the Planning Commission has forwarded a favorable recommendation to the City Council after the public hearing held at a previous Planning Commission meeting. Council discussion followed. Mayor Di Guilio conducted a first reading of the ordinance by title,entitled, ORDINANCE NO. AN ORDINANCE of the City of Port Angeles,Washington,rezoning approximately 1.36 acres from Residential Single Family RS7 to Commercial Office CO. 4. Purchasing Policies&Procedure Ordinance Amendment Chief Financial Officer Olson Byron explained sections of the current municipal code needed to be repealed as the new comprehensive financial policies would replace those sections. Mayor Di Guilio conducted a first reading of the ordinance by title,entitled, ORDINANCE NO. AN ORDINANCE of the City of Port Angeles,Washington,repealing Chapter 3.05,Purchasing Policies and Procedures and Chapter 3.06,Investment of Funds of the Port Angeles Municipal Code. RESOLUTIONS NOT REQUIRING PUBLIC HEARINGS: 1. Resolution Authorizing Investment in Local Government Investment Pool Chief Financial Officer Olson described a recent change to the Washington Administrative Code requiring the City to pass a new resolution authorizing the investment of the City's funds in the Local Government Investment Pool. Council discussion followed. Mayor Di Guilio read the resolution by title,entitled, RESOLUTION NO. 09-14 This is a resolution that authorizes investment of the City of Port Angeles monies in the Local Government Investment Pool. It was moved by Collins and seconded by Downie to: Pass the Resolution by title. Motion carried 6-0. Page 4 of 6 E - 8 PORT ANGELES CITY COUNCIL MEETING—May 6, 2014 FINANCE: 1. WTIP West End Park Vanir Professional Services Agreement for Construction Management/Approve Director West described the selection process used for selecting a construction management team for the Waterfront Transportation Improvement Project. Council discussion followed. Councilmember Gase stated he would be abstaining from the vote due to a property listing he has as a real estate professional next to the West End Park property. It was moved by Downie and seconded by Whetham to: Approve and authorize the City Manager to sign the professional services agreement with Vanir Construction Management,Inc.of Bellevue,Washington in an amount not to exceed$247,947.04.,and to make minor modifications to the agreement,if necessary. Motion carried 5-0,with Gase abstaining from the vote. 2. Landfill Stabilization Construction Project Moved to the City Council Worksession on May 13,2014. OTHER CONSIDERATIONS: 1. Civic Field Repairs Councilmember Whetham requested a discussion regarding how to fund the needed repairs for Civic Field. He described his desire to see the facility be able to operate year round. Council discussion followed. Councilmember Collins suggested the Parks Oversight Committee review the issue and provide a recommendation to Council. Council discussion followed. Manager McKeen provided a brief description regarding what the City is currently doing to keep Civic Field maintained as well as provide updates to failing systems. Council discussion followed. Councilmember Whetham reiterated his request for Council to get behind funding repairs for Civic Field. Council discussion followed. It was moved by Whetham and seconded by Bruch to: Direct staff to present financing option for the repair of Civic Field to turn the facility into a year-round usable facility. Council discussion followed. It was moved by Whetham and seconded by Bruch to: Amend the motion to direct the Parks Oversight Committee to review the issue at their June 11, 2014, meeting and then provide a recommendation to City Council at the June 17, 2014, City Council meeting. Council discussion followed. All motions were withdrawn. It was moved by Whetham and seconded by Bruch to: Direct staff to prepare a presentation regarding how to fund Civic Field improvements to be presented at the June 11,2014,Parks Oversight Committee meeting. Motion carried 6-0. CITY COUNCIL REPORTS: Councilmember Gase spoke regarding his presentation to the Association of Realtors regarding serving on the City Council, and asked for staff to bring back options regarding the continuation of fluoride by the end of August. Council agreed by consensus to direct staff to do so. Mayor Di Guilio spoke regarding his attendance at the recent Farmers' Market and thanked the City Manager and Chief Financial Officer Olson for attending with him and Councilmember Bruch. Page 5 of 6 E - 9 PORT ANGELES CITY COUNCIL MEETING—May 6, 2014 Councilmember Bruch spoke regarding a recent call from a citizen suggesting the City create a blue ribbon advisory board to assist the City with professional consultation needs. Councilmember Collins spoke regarding numerous meetings he attended in the past week,specifically the Salish Sea Conference and their discussion about preparing for rising seas.No other reports were given. INFORMATION: City Manager Reports: 1.Parks,Recreation&Beautification Commission Meeting Minutes 2.Building Report 3.Planning Commission Minutes 4.Taipei Economic and Cultural Office in Seattle—Thank You Letter Manager McKeen spoke regarding the reports included in the packet. Director West provided a brief description regarding a potential grant opportunity for critical repairs to the 215 S. Lincoln St.building,also known as the Old Fire Hall.He stated the grant fund was through the Heritage Capital Fund Opportunity and the grant application process required Council to be notified that staff would be applying for the grant. Council discussion followed. It was moved by Downie and seconded by Gase to: Authorize staff to move forward with grant application for critical repairs to 215 S.Lincoln St.building. Motion carried 6-0. EXECUTIVE SESSION: It was determined there was no need for an executive session. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 8:27 p.m. Dan Di Guilio,Mayor Janessa Hurd,City Clerk Page 6 of 6 E - 10 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount APWA SUPPLIES 001-0000-237.00-00 -3.03 CLALLAM CNTY TREASURER CVCA TO CLALLAM CO TREAS 001-0000-229.40-00 274.68 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 001-0000-237.00-00 389.62 Excise Tax Return-March 001-0000-237.10-00 157.33 Excise Tax Return-March 001-0000-237.30-00 486.24 LEADSONLINE SECURITY,FIRE,SAFETY SERV 001-0000-237.00-00 -180.43 Barb Weeks CLUBHOUSE DAMAGE DEPOSIT 001-0000-239.10-00 50.00 Olympic Medical Center FND VBCC DEPOSIT REFUND OMC 001-0000-239.10-00 300.00 test VBCC RENTAL DEPOSIT REFUN 001-0000-239.10-00 150.00 VBCC RENTAL DEPOSIT REFUN 001-0000-239.10-00 -150.00 SIRCHIE FINGERPRINT LAB CLINICAL LAB REAGENTS TES 001-0000-237.00-00 -10.93 WA STATE PATROL LIVE SCAN CHAGRES FOR FEB 001-0000-229.50-00 395.00 LIVESCAN PRINTS SUBMITTED 001-0000-229.50-00 197.00 Division Total: $2,055.48 Department Total: $2,055.48 ADVANCED TRAVEL Meetings-Downie 001-1160-511.43-10 48.42 PENINSULA AWARDS&TROPHIES FIELD PURCHASE ORDER 001-1160-511.31-01 13.15 PORT ANGELES CITY TREASURER Olympic Tourism Luncheon 001-1160-511.31-01 11.96 2014 Awards banquet-Dow 001-1160-511.31-01 35.80 Victoria trip for mayors 001-1160-511.43-10 34.00 Legislative Mayor& Council Division Total: $143.33 Legislative Department Total: $143.33 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-1210-513.42-10 27.82 04-16 A/C 206T359336570B 001-1210-513.42-10 27.82 04-23 A/C 206T302306084B 001-1210-513.42-10 20.39 CONSOLIDATED TECH SERVICES April SCAN Charges 001-1210-513.42-10 4.34 PORT ANGELES CITY TREASURER Cards for City Manager- 001-1210-513.31-01 18.25 VERIZON WIRELESS City Blackberry Bill 001-1210-513.42-10 7.04 WASHINGTON CITY/CNTY MGMT ASSN FIELD PURCHASE ORDER 001-1210-513.49-01 168.00 City Manager Department City Manager Office Division Total: $273.66 PA DOWNTOWN ASSN Employee Awards 001-1211-513.10-19 50.00 Employee Awards 001-1211-513.10-19 -50.00 Employee Awards 001-1211-513.10-19 50.00 PORT ANGELES SCHOOL DISTRICT AWARDS LUNCHEON 001-1211-513.41-50 1,575.00 City Manager Department Customer Commitment Division Total: $1,625.00 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-1220-516.42-10 5.56 04-16 A/C 206T359336570B 001-1220-516.42-10 5.56 04-23 A/C 206T302306084B 001-1220-516.42-10 4.08 CONSOLIDATED TECH SERVICES April SCAN Charges 001-1220-516.42-10 7.50 VERIZON WIRELESS City Blackberry Bill 001-1220-516.42-10 109.50 City Manager Department Human Resources Division Total: $132.20 ADVANCED TRAVEL Conference-Hurd 001-1230-514.43-10 90.25 Pagel E - 11 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-1230-514.42-10 2.78 04-16 A/C 206T359336570B 001-1230-514.42-10 2.78 04-23 A/C 206T302306084B 001-1230-514.42-10 2.04 CONSOLIDATED TECH SERVICES April SCAN Charges 001-1230-514.42-10 11.24 DATA BASE MANAGEMENT SERVICES 001-1230-514.41-50 227.54 VERIZON WIRELESS City Blackberry Bill 001-1230-514.42-10 54.75 City Manager Department City Clerk Division Total: $391.38 City Manager Department Department Total: $2,422.24 UNITED WAY OF CLALLAM COUNTY SUPPLIES 001-1390-519.49-71 23,175.00 City Manager Dept Community Service Division Total: $23,175.00 City Manager Dept Department Total: $23,175.00 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-2010-514.42-10 19.37 04-16 A/C 206T359336570B 001-2010-514.42-10 19.47 04-23 A/C 206T302306084B 001-2010-514.42-10 14.27 CONSOLIDATED TECH SERVICES April SCAN Charges 001-2010-514.42-10 14.95 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-2010-514.31-01 16.26 PORT ANGELES CITY TREASURER Lanfill Bluff lunch mtg- 001-2010-514.31-01 22.21 VERIZON WIRELESS City Blackberry Bill 001-2010-514.42-10 63.59 Finance Department Finance Administration Division Total: $170.12 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-2023-514.42-10 25.04 04-16 A/C 206T359336570B 001-2023-514.42-10 25.04 04-23 A/C 206T302306084B 001-2023-514.42-10 18.35 CONSOLIDATED TECH SERVICES April SCAN Charges 001-2023-514.42-10 1.54 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 001-2023-514.49-50 -41.82 Excise Tax Return-March 001-2023-514.49-50 -5.75 FCS GROUP AFFORDABILITY INDEX STUDY 001-2023-514.41-50 671.25 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-2023-514.31-01 16.98 Finance Department Accounting Division Total: $710.63 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-2025-514.42-10 36.17 04-16 A/C 206T359336570B 001-2025-514.42-10 36.17 04-23 A/C 206T302306084B 001-2025-514.42-10 26.51 CONSOLIDATED TECH SERVICES April SCAN Charges 001-2025-514.42-10 11.90 EQUIFAX CREDIT REPORTS 001-2025-514.41-50 80.04 FEDERAL EXPRESS CORP Shipping Chgs 001-2025-514.48-10 18.79 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-2025-514.31-01 64.41 PORT ANGELES CITY TREASURER Lanyards for meter reader 001-2025-514.31-01 5.26 SWAIN'S GENERAL STORE INC BOOT ALLOWANCE 001-2025-514.31-11 138.64 VERIZON WIRELESS 04-13 a/c 271272753-00001 001-2025-514.42-10 68.36 Finance Department Customer Service Division Total: $486.25 COPIERS NORTHWEST SADDLE STITCH STAPLES 001-2080-514.31-01 51.44 PITNEY BOWES INC OFFICE MACHINES&ACCESS 001-2080-514.31-01 75.06 UNITED PARCEL SERVICE Shipping Chgs 001-2080-514.42-10 45.20 Page 2 E - 12 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount UNITED PARCEL SERVICE Shipping Chgs 001-2080-514.42-10 22.60 Finance Department Reprographics Division Total: $194.30 Finance Department Department Total: $1,561.30 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-3010-515.42-10 16.69 04-16 A/C 206T359336570B 001-3010-515.42-10 16.69 04-23 A/C 206T302306084B 001-3010-515.42-10 12.24 CONSOLIDATED TECH SERVICES April SCAN Charges 001-3010-515.42-10 4.34 COPIERS NORTHWEST COPY CHARGES FOR APRIL 001-3010-515.45-31 19.06 GREAT AMERICA LEASING CORP COPIER FOR APRIL 001-3010-515.45-31 181.33 JAMES, SANDERSON&LOWERS MED.BILL COPIES RE: HULL 001-3010-515.31-01 21.00 MED.BILL COPIES RE: HULL 001-3010-515.31-01 104.50 MED.BILL COPIES RE: HULL 001-3010-515.31-01 21.50 MED.BILL COPIES RE: HULL 001-3010-515.31-01 49.50 MED.BILL COPIES RE: HULL 001-3010-515.31-01 20.00 MED.BILL COPIES RE: HULL 001-3010-515.31-01 20.50 JAMES, SANDERSON 7 LOWERS MED.BILL COPIES RE: HULL 001-3010-515.31-01 105.50 VERIZON WIRELESS City Blackberry Bill 001-3010-515.42-10 82.12 Attorney Attorney Office Division Total: $674.97 FRIENDSHIP DIVERSION SERVICES FRIENDSHIP DIVERSION-MAY 001-3012-598.51-23 1,233.00 Attorney Jail Contributions Division Total: $1,233.00 ADVANCED TRAVEL Conference-Cowgill 001-3021-515.43-10 161.10 Conference-H McKeen 001-3021-515.43-10 149.85 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-3021-515.42-10 11.13 04-16 A/C 206T359336570B 001-3021-515.42-10 11.13 04-23 A/C 206T302306084B 001-3021-515.42-10 8.16 CLALLAM CNTY DIST 1 COURT COURT/JURY/WITNESS FEES 001-3021-515.50-90 37,008.48 CONSOLIDATED TECH SERVICES April SCAN Charges 001-3021-515.42-10 4.56 COPIERS NORTHWEST COPY CHARGES FOR APRIL 001-3021-515.45-31 19.05 GREAT AMERICA LEASING CORP COPIER FOR APRIL 001-3021-515.45-31 181.33 VERIZON WIRELESS City Blackberry Bill 001-3021-515.42-10 82.13 Attorney Prosecution Division Total: $37,636.92 Attorney Department Total: $39,544.89 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-4010-558.42-10 20.87 04-16 A/C 206T359336570B 001-4010-558.42-10 20.87 04-23 A/C 206T302306084B 001-4010-558.42-10 15.30 CONSOLIDATED TECH SERVICES April SCAN Charges 001-4010-558.42-10 15.80 PORT ANGELES CITY TREASURER PABA weekly breakfast mtg 001-4010-558.31-01 9.87 Neeser Const Breakfast- 001-4010-558.31-01 17.68 PABA weekly breakfast mtg 001-4010-558.31-01 9.86 Chamber of Commerce Iuche 001-4010-558.31-01 15.00 Batteries-West 001-4010-558.31-01 18.24 PABA weekly breakfast mtg 001-4010-558.31-01 14.85 Page 3 E - 13 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount SOUND PUBLISHING INC COMMUNICATIONS/MEDIA SERV 001-4010-558.44-10 60.04 COMMUNICATIONS/MEDIA SERV 001-4010-558.44-10 40.76 VERIZON WIRELESS City Blackberry Bill 001-4010-558.42-10 54.75 Community Development Planning Division Total: $313.89 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-4020-524.42-10 7.23 04-16 A/C 206T359336570B 001-4020-524.42-10 7.23 04-23 A/C 206T302306084B 001-4020-524.42-10 5.30 CONSOLIDATED TECH SERVICES April SCAN Charges 001-4020-524.42-10 3.09 VERIZON WIRELESS 04-15 a/c 264230412-00003 001-4020-524.42-10 53.34 Community Development Building Division Total: $76.19 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-4030-559.42-10 1.1 1 04-16 A/C 206T359336570B 001-4030-559.42-10 1.11 04-23 A/C 206T302306084B 001-4030-559.42-10 0.82 CONSOLIDATED TECH SERVICES April SCAN Charges 001-4030-559.42-10 5.88 Community Development Code Compliance Division Total: $8.92 ENVIRONMENTAL INFORMATION MGMT CONSULTING SERVICES 001-4062-558.41-50 162.81 Community Development Cultural Resources Division Total: $162.81 Community Development Department Total: $561.81 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-5010-521.42-10 44.52 04-16 A/C 206T359336570B 001-5010-521.42-10 44.52 04-23 A/C 206T302306084B 001-5010-521.42-10 32.63 04-20 A/C206Z200017790B 001-5010-521.42-10 199.03 04-23 A/C 206TO31979835B 001-5010-521.42-10 64.74 04-23 A/C 206T411918873B 001-5010-521.42-10 57.46 CONSOLIDATED TECH SERVICES April SCAN Charges 001-5010-521.42-10 36.75 COYLE,STEVEN A. 2 BKGRN INVEST PATROL,MIN 001-5010-521.41-50 600.00 RLI BOND RENEWAL FOR NOTARY Z 001-5010-521.31-01 75.00 PUBLIC SAFETY TESTING INC HUMAN SERVICES 001-5010-521.41-50 350.00 VERIZON WIRELESS City Blackberry Bill 001-5010-521.42-10 195.75 Police Department Police Administration Division Total: $1,700.40 OLYMPIC PENINSULA HUMANE SOCIETY ENVIRONMENTAL&ECOLOGICAL 001-5012-521.41-50 10,412.50 Police Department Intergovernmental Svcs Division Total: $10,412.50 ADVANCED TRAVEL Training-D Arand 001-5021-521.43-10 499.10 Training-D Arand 001-5021-521.43-10 157.60 Training-S Martin 001-5021-521.43-10 478.47 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-5021-521.42-10 27.82 04-16 A/C 206T359336570B 001-5021-521.42-10 27.82 04-23 A/C 206T302306084B 001-5021-521.42-10 20.39 CONSOLIDATED TECH SERVICES April SCAN Charges 001-5021-521.42-10 13.96 VERIZON WIRELESS City Blackberry Bill 001-5021-521.42-10 568.60 Police Department Investigation Division Total: $1,793.76 ADVANCED TRAVEL Training-S Martin 001-5022-521.43-10 758.39 BRATWEAR CLOTHING &APPAREL 001-5022-521.20-80 442.81 Page 4 E - 14 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-5022-521.42-10 77.91 04-16 A/C 206T359336570B 001-5022-521.42-10 77.91 04-23 A/C 206T302306084B 001-5022-521.42-10 57.10 CONSOLIDATED TECH SERVICES April SCAN Charges 001-5022-521.42-10 35.78 HELPERTEK DATA PROC SERV&SOFTWARE 001-5022-521.48-10 171.87 LINCOLN STREET STATION SHIPPING AND HANDLING 001-5022-521.42-10 29.84 good to go!Customer Svr.Cntr GOOD TO GO CHG WA LIC 390 001-5022-521.43-10 6.25 SIRCHIE FINGERPRINT LAB CLINICAL LAB REAGENTS TES 001-5022-521.31-01 141.08 SQUAD ROOM EMBLEMS POLICE EQUIPMENT&SUPPLY 001-5022-521.31-11 282.09 SWAIN'S GENERAL STORE INC POLICE EQUIPMENT&SUPPLY 001-5022-521.31-01 6.44 VERIZON WIRELESS City Blackberry Bill 001-5022-521.42-10 2,303.24 Police Department Patrol Division Total: $4,390.71 VERIZON WIRELESS City Blackberry Bill 001-5026-521.42-10 34.71 Police Department Reserves& Volunteers Division Total: $34.71 ADVANCED TRAVEL Training-Carino 001-5029-521.43-10 135.35 CANON USA, INC OFFICE MACHINES&ACCESS 001-5029-521.45-31 138.86 OFFICE MACHINES&ACCESS 001-5029-521.45-31 275.64 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-5029-521.42-10 27.82 04-16 A/C 206T359336570B 001-5029-521.42-10 27.82 04-23 A/C 206T302306084B 001-5029-521.42-10 20.39 CONSOLIDATED TECH SERVICES April SCAN Charges 001-5029-521.42-10 8.97 CROSS MATCH TECHNOLOGIES INC COMPUTER SOFTWARE FOR MIC 001-5029-521.48-02 1,266.11 HELPERTEK DATA PROC SERV&SOFTWARE 001-5029-521.48-10 171.88 LEADSONLINE SECURITY,FIRE,SAFETY SERV 001-5029-521.41-50 2,328.43 Rene's Mailings, Inc. SHIRTS FOR RECORDS STAFF 001-5029-521.31-11 338.83 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 73.12 Police Department Records Division Total: $4,813.22 Police Department Department Total: $23,145.30 CANON USA, INC CONTRACT 001-6010-522.45-31 190.69 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6010-522.42-10 38.95 04-16 A/C 206T359336570B 001-6010-522.42-10 38.95 04-23 A/C 206T302306084B 001-6010-522.42-10 28.55 04-23 A/C 206T310164584B 001-6010-522.42-11 11.13 04-16 A/C 206T359336570B 001-6010-522.42-11 11.13 04-23 A/C 206T302306084B 001-6010-522.42-11 8.16 CONSOLIDATED TECH SERVICES April SCAN Charges 001-6010-522.42-10 3.53 April SCAN Charges 001-6010-522.42-11 5.22 PORT ANGELES CITY TREASURER Family shirts-Dubuc 001-6010-522.20-80 8.13 Refreshments Clallam Co F 001-6010-522.31-01 28.99 PORT ANGELES FIRE DEPARTMENT REFRESHMENTS 001-6010-522.31-01 55.70 VERIZON WIRELESS City Blackberry Bill 001-6010-522.42-10 54.75 Fire Department Fire Administration Division Total: $483.88 Page 5 E - 15 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6020-522.42-10 36.17 04-16 A/C 206T359336570B 001-6020-522.42-10 36.17 04-23 A/C 206T302306084B 001-6020-522.42-10 26.51 CONSOLIDATED TECH SERVICES April SCAN Charges 001-6020-522.42-10 0.53 Terry Reid REIMBURSE CLOTHING ALLOWA 001-6020-522.20-80 26.17 PACIFIC OFFICE EQUIPMENT INC TONER 001-6020-522.31-01 111.72 SUNSET DO-IT BEST HARDWARE HARDWARE 001-6020-522.31-02 88.93 DUCT TAPE 001-6020-522.31-02 18.69 SWAIN'S GENERAL STORE INC FOAM 001-6020-522.31-02 6.48 VERIZON WIRELESS 04-15 a/c 264395724-00001 001-6020-522.42-10 78.73 Fire Department Fire Suppression Division Total: $430.10 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6021-522.42-10 2.78 04-16 A/C 206T359336570B 001-6021-522.42-10 2.78 04-23 A/C 206T302306084B 001-6021-522.42-10 2.04 Provident ACCIDENT INSURANCE 001-6021-522.49-01 1,036.00 Fire Department Fire Volunteers Division Total: $1,043.60 ANGELES MILLWORK&LUMBER CO HARDWARE 001-6030-522.31-01 199.41 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6030-522.42-10 5.56 04-16 A/C 206T359336570B 001-6030-522.42-10 5.56 04-23 A/C 206T302306084B 001-6030-522.42-10 4.08 PORT ANGELES FIRE DEPARTMENT POSTAGE 001-6030-522.42-10 6.49 SWAIN'S GENERAL STORE INC SMOKE DETECTOR 001-6030-522.31-01 7.56 Fire Department Fire Prevention Division Total: $228.66 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6040-522.42-10 5.56 04-16 A/C 206T359336570B 001-6040-522.42-10 5.56 04-23 A/C 206T302306084B 001-6040-522.42-10 4.08 CONSOLIDATED TECH SERVICES April SCAN Charges 001-6040-522.42-10 0.29 Fire Department Fire Training Division Total: $15.49 MRS CLEAN JANITORIAL SERVICES 001-6050-522.41-50 425.00 OLYMPIC PARTY&CUSTODIAL SUPPLIE:SUPPLIES 001-6050-522.31-01 25.83 WHEELER,CORAL SUPPLIES 001-6050-522.31-01 60.01 Fire Department Facilities Maintenance Division Total: $510.84 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-6060-525.42-10 25.04 04-16 A/C 206T359336570B 001-6060-525.42-10 25.04 04-23 A/C 206T302306084B 001-6060-525.42-10 18.35 Fire Department Emergency Management Division Total: $68.43 Fire Department Department Total: $2,781.00 ADVANCED TRAVEL Conference-Fulton 001-7010-532.43-10 631.81 Conference-Szatlocky 001-7010-532.43-10 448.39 APWA SUPPLIES 001-7010-532.31-01 39.03 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-7010-532.42-10 86.26 04-16 A/C 206T359336570B 001-7010-532.42-10 86.26 04-23 A/C 206T302306084B 001-7010-532.42-10 63.22 Page 6 E - 16 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount CONSOLIDATED TECH SERVICES April SCAN Charges 001-7010-532.42-10 118.97 FEDERAL EXPRESS CORP Shipping Chgs 001-7010-532.42-10 51.38 MAHERABED MILEAGE REIMBURSEMENT FOR 001-7010-532.31-01 128.24 SWAIN'S GENERAL STORE INC SHOES AND BOOTS 001-7010-532.31-01 108.29 VERIZON WIRELESS City Blackberry Bill 001-7010-532.42-10 109.52 04-22 a/c 571136182-00001 001-7010-532.42-10 581.69 Public Works-Gen Fnd Pub Wks Administration Division Total: $2,453.06 Public Works-Gen Fnd Department Total: $2,453.06 ADVANCED TRAVEL Conference-Delikat 001-8010-574.43-10 780.04 ASM SIGNS SIGNS, SIGN MATERIAL 001-8010-574.41-50 1,072.18 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-8010-574.42-10 8.35 04-16 A/C 206T359336570B 001-8010-574.42-10 8.35 04-23 A/C 206T302306084B 001-8010-574.42-10 6.12 CONSOLIDATED TECH SERVICES April SCAN Charges 001-8010-574.42-10 9.11 DELL MARKETING LP COMPUTER HARDWARE&PERI PHI 001-8010-574.31-80 2,051.06 OLYMPIC PRINTERS INC PRINTING,SILK SCR,TYPSET 001-8010-574.45-31 7.62 PRINTING,SILK SCR,TYPSET 001-8010-574.45-31 40.62 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8010-574.45-31 8.68 PEN PRINT INC PRINTING,SILK SCR,TYPSET 001-8010-574.49-60 222.22 VERIZON WIRELESS 04-22 a/c 571136182-00005 001-8010-574.42-10 49.22 City Blackberry Bill 001-8010-574.42-10 54.75 Parks Dept Parks Administration Division Total: $4,318.32 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-8012-555.42-10 8.35 04-16 A/C 206T359336570B 001-8012-555.42-10 8.35 04-23 A/C 206T302306084B 001-8012-555.42-10 6.12 04-20 A/C 206T217227465B 001-8012-555.42-10 57.46 CONSOLIDATED TECH SERVICES April SCAN Charges 001-8012-555.42-10 1.54 OLYMPIC PRINTERS INC PRINTING,SILK SCR,TYPSET 001-8012-555.45-31 7.62 PRINTING,SILK SCR,TYPSET 001-8012-555.45-31 40.63 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8012-555.45-31 8.67 Parks Dept Senior Center Division Total: $138.74 ANGELES MILLWORK&LUMBER CO BUILDER'S SUPPLIES 001-8050-536.34-01 17.52 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-8050-536.42-10 5.56 04-16 A/C 206T359336570B 001-8050-536.42-10 5.56 04-23 A/C 206T302306084B 001-8050-536.42-10 4.08 CONSOLIDATED TECH SERVICES April SCAN Charges 001-8050-536.42-10 5.22 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 001-8050-536.49-50 52.43 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8050-536.31-01 63.66 QUIRING MONUMENTS INC CEMETERY MARKERS 001-8050-536.34-01 187.00 CEMETERY MARKERS 001-8050-536.34-01 761.00 CEMETERY MARKERS 001-8050-536.34-01 1,304.00 SUNSET DO-IT BEST HARDWARE PLUMBING EQUIP FIXT,SUPP 001-8050-536.31-20 220.62 Page 7 E - 17 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount VERIZON WIRELESS 04-22 a/c 571136182-00005 001-8050-536.42-10 79.74 Parks Dept Ocean View Cemetery Division Total: $2,706.39 ANGELES CONCRETE PRODUCTS ROAD/HWY MAT NONASPHALTIC 001-8080-576.31-20 925.28 ANGELES MILLWORK&LUMBER CO BRUSHES(NOT CLASSIFIED) 001-8080-576.31-20 40.32 PAINTS,COATI N GS,WALLPAPER 001-8080-576.31-20 10.88 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-8080-576.42-10 27.82 04-16 A/C 206T359336570B 001-8080-576.42-10 27.82 04-23 A/C 206T302306084B 001-8080-576.42-10 20.39 CLALLAM CNTY DEPT OF HEALTH HEALTH RELATED SERVICES 001-8080-576.31-01 92.00 ENVIRONMENTAL&ECOLOGICAL 001-8080-576.31-20 81.00 FERGUSON ENTERPRISES INC PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 135.26 PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 461.39 GRAINGER ELECTRICAL EQUIP&SUPPLY 001-8080-576.31-20 205.59 HEARTLINE NURSERY STOCK&SUPPLIES 001-8080-576.31-40 130.09 NURSERY STOCK&SUPPLIES 001-8080-576.31-40 130.08 MURRAY MOTORS INC HARDWARE,AND ALLIED ITEMS 001-8080-576.31-01 92.62 SUNSET DO-IT BEST HARDWARE HARDWARE,AND ALLIED ITEMS 001-8080-576.31-01 159.95 PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 13.43 HAND TOOLS ,POW&NON POWER 001-8080-576.31-20 26.08 SWAIN'S GENERAL STORE INC SHOES AND BOOTS 001-8080-576.31-01 121.30 HARDWARE,AND ALLIED ITEMS 001-8080-576.31-01 28.12 THURMAN SUPPLY HARDWARE,AND ALLIED ITEMS 001-8080-576.31-20 23.35 HARDWARE,AND ALLIED ITEMS 001-8080-576.31-20 12.27 Parks Dept Park Facilities Division Total: $2,765.04 FEIRO MARINE LIFE CENTER MISC PROFESSIONAL SERVICE 001-8090-576.41-50 5,062.50 Parks Dept Marine Life Center Division Total: $5,062.50 Parks Dept Department Total: $14,990.99 HD SUPPLY PLUMBING EQUIP FIXT,SUPP 001-8112-555.31-20 240.18 THURMAN SUPPLY PLUMBING EQUIP FIXT,SUPP 001-8112-555.31-20 30.16 Facilities Maintenance Senior Center Facilities Division Total: $270.34 AMSAN JANITORIAL SUPPLIES 001-8131-518.31-01 30.59 HARDWARE,AND ALLIED ITEMS 001-8131-518.31-01 3.31 ANGELES MILLWORK&LUMBER CO HARDWARE,AND ALLIED ITEMS 001-8131-518.31-20 6.41 PAINTS,COATI N GS,WALLPAPER 001-8131-518.31-20 10.88 ANGELES PEST CONTROL BUILDING MAINT&REPAIR SER 001-8131-518.48-10 205.96 BAILEY SIGNS&GRAPHICS SIGNS, SIGN MATERIAL 001-8131-518.31-20 162.60 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP&SUPPLY 001-8131-518.31-20 77.18 CENTURYLINK-QWEST 04-23 A/C206T310164584B 001-8131-518.42-10 5.56 04-16 A/C206T359336570B 001-8131-518.42-10 5.56 04-23 A/C206T302306084B 001-8131-518.42-10 4.08 04-16 A/C 206T355724768B 001-8131-518.42-10 57.46 HARTNAGEL BUILDING SUPPLY INC HARDWARE,AND ALLIED ITEMS 001-8131-518.31-20 16.13 Page 8 E - 18 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount HARTNAGEL BUILDING SUPPLY INC PAINTS,COATI N GS,WALLPAPER 001-8131-518.31-20 136.13 BRUSHES(NOT CLASSIFIED) 001-8131-518.31-20 137.53 L&L TOOL SPECIALTIES PIPE FITTINGS 001-8131-518.35-01 81.21 MATHEWS GLASS CO INC BUILDING MAINT&REPAIR SER 001-8131-518.31-20 86.72 Northwest Asbestos Concultants VBCC ROOF INSPECTION 001-8131-518.48-10 500.00 OTIS ELEVATOR COMPANY INC BUILDING MAINT&REPAIR SER 001-8131-518.48-10 2,431.12 SWAIN'S GENERAL STORE INC HARDWARE,AND ALLIED ITEMS 001-8131-518.31-01 30.22 HARDWARE,AND ALLIED ITEMS 001-8131-518.31-01 9.44 HARDWARE,AND ALLIED ITEMS 001-8131-518.31-01 7.09 HARDWARE,AND ALLIED ITEMS 001-8131-518.31-20 12.88 HARDWARE,AND ALLIED ITEMS 001-8131-518.31-20 60.84 VERIZON WIRELESS 04-22 a/c 571136182-00005 001-8131-518.42-10 122.35 Facilities Maintenance Central Svcs Facilities Division Total: $4,201.25 Facilities Maintenance Department Total: $4,471.59 ANDERSEN, BRIAN L REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 264.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 132.00 AT&T MOBILITY 04-26 a/c 994753890 001-8221-574.42-10 7.49 BILL'S PLUMBING&HEATING INC BUILDING, FABRICATED 001-8221-574.41-50 270.00 BOE, MADELINE M. SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 60.00 CAPTAIN T'S CLOTHING &APPAREL 001-8221-574.31-01 210.08 CLOTHING &APPAREL 001-8221-574.31-01 11.84 CLOTHING &APPAREL 001-8221-574.31-01 641.73 CENTURYLINK-QWEST 04-23 A/C206T310164584B 001-8221-574.42-10 5.56 04-16 A/C206T359336570B 001-8221-574.42-10 5.56 04-23 A/C206T302306084B 001-8221-574.42-10 4.08 CHAPMAN JR, HOWARD E PAY FOR UMPIRING MEN'S SO 001-8221-574.41-50 110.00 CONSOLIDATED TECH SERVICES April SCAN Charges 001-8221-574.42-10 7.94 CORNELL, CHRISTOPHER S PAY FOR REFFING BASKETBAL 001-8221-574.41-50 154.00 DOBYNS,THERESA SCOREKEEPER'S PAY FOR WOM 001-8221-574.41-50 230.00 EDGAR, KELSEY REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 242.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 242.00 FAIRCHILD, NICK SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 120.00 FRAZIER, BRIAN D PAY FOR REFFING BASKETBAL 001-8221-574.41-50 132.00 HEILMAN,JOHN PAY FOR UMPIRING MEN'S SO 001-8221-574.41-50 264.00 HENSEN,JAMES C PAY FOR REFFING WOMEN'S B 001-8221-574.41-50 242.00 HOLLOWAY, MICHAEL REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 264.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 22.00 JEFFERS, KYLES B SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 120.00 KNOWLES,JAY SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 60.00 NEEL,JENNIFER DAWN PAY FOR REFFING BASKETBAL 001-8221-574.41-50 264.00 OLYMPIC PRINTERS INC PRINTING,SILK SCR,TYPSET 001-8221-574.45-31 7.62 PRINTING,SILK SCR,TYPSET 001-8221-574.45-31 40.63 Page 9 E - 19 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8221-574.45-31 8.67 PIMENTEL, HENRY REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 110.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 132.00 RAMSEY, EMILY SCOREKEEPER'S PAY FOR WOM 001-8221-574.41-50 80.00 RAMSEY,SCOTT REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 88.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 242.00 ROBINSON,JASON SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 90.00 SCOREKEEPER'S PAY FOR WOM 001-8221-574.41-50 20.00 RODOCKER, PAXTON SCOREKEEPER'S PAY FOR MAY 001-8221-574.41-50 30.00 ROONEY, RANDY L PAY FOR UMPIRING WOMEN'S 001-8221-574.41-50 242.00 SADDLER, CHARLES M REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 198.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 264.00 SWAIN'S GENERAL STORE INC SPORTING &ATHLETIC EQUIP 001-8221-574.31-01 650.92 THAYER,JEFFREY REFEREE PAY FOR MAYDAY HO 001-8221-574.41-50 132.00 REFEREE PAY FOR WOMEN'S H 001-8221-574.41-50 242.00 UMPIRE PAY FOR MEN'S KICK 001-8221-574.41-50 242.00 THOMAS, GREGORY PAY FOR UMPIRING WOMEN'S 001-8221-574.41-50 110.00 VISELL,JOSEPH F. PAY FOR REFFING BASKETBAL 001-8221-574.41-50 264.00 WA AMATEUR SOFTBALL ASSN MEMBERSHIPS 001-8221-574.41-50 763.00 Recreation Activities Sports Programs Division Total: $8,043.12 ADVANCED TRAVEL Award Dinner- Bellamente 001-8224-574.43-10 202.37 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 001-8224-574.42-10 2.78 04-16 A/C 206T359336570B 001-8224-574.42-10 2.78 04-23 A/C 206T302306084B 001-8224-574.42-10 2.04 FEDERAL EXPRESS CORP Shipping Chgs 001-8224-574.42-10 9.29 test CHEERLEADING CAMP DALASA 001-8224-574.43-10 145.00 CHEERLEADING CAMP WENDY N 001-8224-574.43-10 145.00 CHEERLEADING CAMP KATE NO 001-8224-574.43-10 145.00 CHEERLEADING CAMP DALASA 001-8224-574.43-10 -145.00 CHEERLEADING CAMP WENDY N 001-8224-574.43-10 -145.00 CHEERLEADING CAMP KATE NO 001-8224-574.43-10 -145.00 OLYMPIC PRINTERS INC PRINTING,SILK SCR,TYPSET 001-8224-574.45-31 7.62 PRINTING,SILK SCR,TYPSET 001-8224-574.45-31 40.63 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8224-574.45-31 8.67 PEN PRINT INC PRINTING,SILK SCR,TYPSET 001-8224-574.31-01 42.28 PORT ANGELES CITY TREASURER Clallam Transit Kids to s 001-8224-574.31-01 10.00 SWAIN'S GENERAL STORE INC HARDWARE,AND ALLIED ITEMS 001-8224-574.31-01 5.93 VERIZON WIRELESS 04-22 a/c 571136182-00005 001-8224-574.42-10 30.25 Recreation Activities Youth/Family Programs Division Total: $364.64 Recreation Activities Department Total: $8,407.76 General Fund Fund Total: $125,713.75 PORT ANGELES CHAMBER OF COMM CONSULTING SERVICES 101-1430-557.50-83 13,326.86 Page 10 E - 20 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount Lodging Excise Tax Lodging Excise Tax Division Total: $13,326.86 Lodging Excise Tax Department Total: $13,326.86 Lodging Excise Tax Fund Fund Total: $13,326.86 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 102-0000-237.00-00 54.10 SAFEWAY SIGN CO MARKERS, PLAQUES,SIGNS 102-0000-237.00-00 -677.50 Division Total: -$623.40 Department Total: -$623.40 3M MARKERS, PLAQUES,SIGNS 102-7230-542.31-25 1,736.57 MARKERS, PLAQUES,SIGNS 102-7230-542.31-25 1,591.85 MARKERS, PLAQUES,SIGNS 102-7230-542.31-25 546.34 MARKERS, PLAQUES,SIGNS 102-7230-542.31-25 475.61 ANGELES MILLWORK&LUMBER CO LUMBER& RELATED PRODUCTS 102-7230-542.31-20 27.60 HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 18.51 PLASTICS 102-7230-542.31-20 179.67 LUMBER& RELATED PRODUCTS 102-7230-542.31-20 14.79 HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 36.83 PAINTS,COATI N GS,WALLPAPER 102-7230-542.31-25 34.14 BAXTER AUTO PARTS#15 JANITORIAL SUPPLIES 102-7230-542.31-01 31.07 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 102-7230-542.42-10 13.91 04-16 A/C 206T359336570B 102-7230-542.42-10 13.91 04-23 A/C 206T302306084B 102-7230-542.42-10 10.20 CONSOLIDATED TECH SERVICES April SCAN Charges 102-7230-542.42-10 6.25 FASTENAL INDUSTRIAL PAINTS,COATI N GS,WALLPAPER 102-7230-542.31-25 41.86 HARTNAGEL BUILDING SUPPLY INC LUMBER& RELATED PRODUCTS 102-7230-542.31-20 297.71 LAKESIDE INDUSTRIES INC ROAD/HWY MATERIALS ASPHLT 102-7230-542.31-20 268.29 WSU-CONFERENCE MANAGEMENT CODY ROMERO REGISTRATION 102-7230-542.43-10 560.00 DAVE CAMERON REGISTRATION 102-7230-542.43-10 560.00 O'REILLYAUTO PARTS MARKERS, PLAQUES,SIGNS 102-7230-542.31-20 37.90 PUD#1 OF CLALLAM COUNTY SE 101 & Euclid 102-7230-542.47-10 15.16 Lauridsen& L St 102-7230-542.47-10 13.80 SAFEWAY SIGN CO MARKERS, PLAQUES,SIGNS 102-7230-542.31-25 8,742.97 SUNSET DO-IT BEST HARDWARE HARDWARE,AND ALLIED ITEMS 102-7230-542.31-01 103.69 LAWN MAINTENANCE EQUIP 102-7230-542.31-01 28.26 HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 10.08 HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 33.90 SPRAYING EQUIPMENT 102-7230-542.35-01 72.93 SWAIN'S GENERAL STORE INC SHOES AND BOOTS 102-7230-542.31-01 150.00 PAINTS,COATI N GS,WALLPAPER 102-7230-542.35-01 50.61 THURMAN SUPPLY HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 38.02 USA BLUEBOOK CHEM RAW MATERIALS MFG 102-7230-542.31-01 409.36 CHEM RAW MATERIALS MFG 102-7230-542.31-01 305.90 VERIZON WIRELESS City Blackberry Bill 102-7230-542.42-10 54.75 Page 11 E - 21 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount WASHINGTON(DOT),STATE OF CONSTRUCTION SERVICES,GEN 102-7230-542.48-10 79.69 Public Works-Street Street Division Total: $16,612.13 Public Works-Street Department Total: $16,612.13 Street Fund Fund Total: $15,988.73 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 103-1511-558.42-10 1.39 04-16 A/C 206T359336570B 103-1511-558.42-10 1.39 04-23 A/C 206T302306084B 103-1511-558.42-10 1.02 JOURNAL COMMUNICATIONS, INC MARKETING 103-1511-558.44-10 1,750.00 PORT ANGELES CITY TREASURER PABA weekly breakfast mtg 103-1511-558.31-01 16.05 PABA weekly breakfast mtg 103-1511-558.31-01 11.83 VERIZON WIRELESS 04-15 a/c 264230412-00003 103-1511-558.42-10 35.56 Economic Development Economic Development Division Total: $1,817.24 Economic Development Department Total: $1,817.24 Economic Development Fund Total: $1,817.24 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 107-0000-237.00-00 240.00 Division Total: $240.00 Department Total: $240.00 ADVANCED TRAVEL Conference-Brooks 107-5160-528.43-11 628.69 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 107-5160-528.42-10 75.13 04-16 A/C 206T359336570B 107-5160-528.42-10 75.13 04-23 A/C 206T302306084B 107-5160-528.42-10 55.06 CONSOLIDATED TECH SERVICES April SCAN Charges 107-5160-528.42-10 79.01 COYLE,STEVEN A. PENCOM AISLING,PARKER,KAS 107-5160-528.41-50 1,200.00 EATON CORPORATION EQUIPMENT MAINTENANCE 107-5160-528.48-10 5,947.00 Gary Brooks BROOKS-SPRING ACCIS CON 107-5160-528.43-11 250.00 PUBLIC SAFETY TESTING INC HUMAN SERVICES 107-5160-528.41-50 150.00 VERIZON WIRELESS City Blackberry Bill 107-5160-528.42-10 164.25 Pencom Pencom Division Total: $8,624.27 Pencom Department Total: $8,624.27 Pencom Fund Fund Total: $8,864.27 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 156-8630-575.42-10 8.35 04-16 A/C 206T359336570B 156-8630-575.42-10 8.35 04-23 A/C 206T302306084B 156-8630-575.42-10 6.12 04-23 A/C 2067418577331 B 156-8630-575.42-10 57.46 OLYMPIC PRINTERS INC PRINTING,SILK SCR,TYPSET 156-8630-575.45-31 7.62 PRINTING,SILK SCR,TYPSET 156-8630-575.45-31 40.63 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 156-8630-575.45-31 8.67 VERIZON WIRELESS 04-22 a/c 571136182-00005 156-8630-575.42-10 36.15 Esther Webster/Fine Arts Esther Webster/Fine Arts Division Total: $173.35 Esther Webster/Fine Arts Department Total: $173.35 Fine Arts Center Fund Total: $173.35 Page 12 E - 22 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount BANK OF NEW YORK-DEBT SVC WIRE PORANGEREF05-DEBT SVC P 212-2489-591.73-10 10,700.00 Debt Service 2005 GO Bond Refunding Division Total: $10,700.00 Debt Service Department Total: $10,700.00 2005 GO Refunding Bonds Fund Total: $10,700.00 DAILY JOURNAL OF COMMERCE COMMUNICATIONS/MEDIA SERV 310-7961-595.65-10 237.30 Capital Projects-Pub Wks ST-Sidewalk Improvement Division Total: $237.30 Capital Projects-Pub Wks Department Total: $237.30 Capital Improvement Fund Total: $237.30 BPA-POWER WIRES March Power Wire-EFT 401-0000-213.10-00 2,075,605.00 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP&SUPPLY 401-0000-141.42-00 229.45 ELECTRICAL EQUIP&SUPPLY 401-0000-141.42-00 238.48 ELECTRICAL EQUIP&SUPPLY 401-0000-141.42-00 313.28 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 401-0000-237.00-00 434.39 FERGUSON ENTERPRISES INC ELECTRICAL EQUIP&SUPPLY 401-0000-141.43-00 851.83 GENERAL PACIFIC INC ELECTRICAL EQUIP&SUPPLY 401-0000-141.41-00 1,301.07 ELECTRICAL EQUIP&SUPPLY 401-0000-141.41-00 143.36 HD SUPPLY POWER SOLUTIONS, LTD FASTENERS, FASTENING DEVS 401-0000-141.41-00 95.28 ELECTRICAL EQUIP&SUPPLY 401-0000-141.41-00 818.20 ELECTRICAL EQUIP&SUPPLY 401-0000-141.42-00 5,928.35 RILEY,TIMOTHY C OVERPAYMENT-605 CHAMBERS 401-0000-122.10-99 44.06 WESCO DISTRIBUTION INC ELECTRICAL EQUIP&SUPPLY 401-0000-141.41-00 1,881.39 ELECTRICAL EQUIP&SUPPLY 401-0000-141.41-00 232.95 Division Total: $2,088,117.09 Department Total: $2,088,117.09 CENTURYLINK-QWEST 04-23 A/C206T310164584B 401-7111-533.42-10 8.35 04-16 A/C206T359336570B 401-7111-533.42-10 8.35 04-23 A/C206T302306084B 401-7111-533.42-10 6.12 CONSOLIDATED TECH SERVICES April SCAN Charges 401-7111-533.42-10 12.71 NORTHWEST PUBLIC POWER ASSN EDUCATIONAL SERVICES 401-7111-533.43-10 890.00 OSMOSE UTILITIES SERVICES, INC DATA PROC SERV&SOFTWARE 401-7111-533.48-02 428.18 VERIZON WIRELESS 04-22 a/c 571136182-00001 401-7111-533.42-10 99.22 Public Works-Electric Engineering-Electric Division Total: $1,452.93 ADVANCED TRAVEL Training-King 401-7120-533.43-10 139.26 Meeting-King 401-7120-533.43-10 88.39 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 401-7120-533.42-10 8.35 04-16 A/C 206T359336570B 401-7120-533.42-10 8.35 04-23 A/C 206T302306084B 401-7120-533.42-10 6.12 CONSOLIDATED TECH SERVICES April SCAN Charges 401-7120-533.42-10 21.53 FCS GROUP CONSULTING SERVICES 401-7120-533.41-50 28.83 LAUREL BLACK DESIGN ARCHITECTURAL&ENGINEERING 401-7120-533.41-50 290.00 MARSH MUNDORF PRATT SULLIVAN CONSULTING SERVICES 401-7120-533.49-01 100.00 Phil Lusk AIRFARE REIMBURSEMENT FOR 401-7120-533.43-10 468.50 Page 13 E - 23 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount Public Works-Electric Power Systems Division Total: $1,159.33 ALDERGROVE CONSTRUCTION INC ROADSIDE,GRNDS,REC, PARK 401-7180-533.48-10 1,782.10 ANGELES MILLWORK&LUMBER CO LUMBER& RELATED PRODUCTS 401-7180-533.34-02 9.47 CANON USA, INC RENTAL OR LEASE SERVICES 401-7180-533.45-31 176.61 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 96.74 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 90.92 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 124.64 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 404.20 ELECTRICAL CABLES&WIRES 401-7180-533.34-02 908.52 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 32.52 ELECTRICAL CABLES&WIRES 401-7180-533.34-02 140.92 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 349.59 CENTURYLINK-QWEST 04-14 a/c 3604574717777B 401-7180-533.42-10 127.93 04-16 a/c 206T323881998B 401-7180-533.42-10 54.54 04-16 a/c 206T326157000B 401-7180-533.42-10 54.54 04-16 a/c 206T323879996B 401-7180-533.42-10 54.54 04-16 a/c 206T322760994B 401-7180-533.42-10 54.54 04-23 A/C 206T310164584B 401-7180-533.42-10 66.78 04-16 A/C 206T359336570B 401-7180-533.42-10 66.78 04-23 A/C 206T302306084B 401-7180-533.42-10 48.94 CERTIFIED HEARING INC HEALTH RELATED SERVICES 401-7180-533.48-10 25.00 CONSOLIDATED TECH SERVICES April SCAN Charges 401-7180-533.42-10 10.66 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 401-7180-533.49-50 132,748.54 ENVIRONMENTAL INFORMATION MGMT ENVIRONMENTAL&ECOLOGICAL 401-7180-533.48-10 81.41 FCS GROUP CONSULTING SERVICES 401-7180-533.41-50 5,170.07 FEDERAL EXPRESS CORP Shipping Chgs 401-7180-533.42-10 56.39 FERGUSON ENTERPRISES INC PW CONSTRUCTION & RELATED 401-7180-533.34-02 725.85 GRAINGER OFFICE SUPPLIES, GENERAL 401-7180-533.34-02 52.14 IMSA NW CERTIFICATION MEMBERSHIPS 401-7180-533.49-01 70.00 NORTH COAST ELECTRIC COMPANY ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 151.15 OLYMPIC LAUNDRY&DRY CLEANERS LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 82.79 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 82.79 PUD#1 OF CLALLAM COUNTY ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 2,450.78 GLASS RD 401-7180-533.41-50 114.17 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 401-7180-533.31-01 29.25 ROHLINGER ENTERPRISES INC ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 423.52 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 680.17 TESTING&CALIBRATION SERVI 401-7180-533.48-10 1,254.23 TESTING&CALIBRATION SERVI 401-7180-533.48-10 1,357.37 SECURITY SERVICES NW, INC COMMUNICATIONS/MEDIA SERV 401-7180-533.41-50 650.00 SUNSET DO-IT BEST HARDWARE ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 10.08 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 50.20 Page 14 E - 24 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount SUNSET DO-IT BEST HARDWARE ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 14.01 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 6.33 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 61.03 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 8.08 FASTENERS, FASTENING DEVS 401-7180-533.34-02 61.20 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 11.30 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 6.70 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 9.74 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 32.62 THURMAN SUPPLY ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 89.86 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 8.75 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 15.14 UNITED PARCEL SERVICE Shipping Chgs 401-7180-533.42-10 7.47 Shipping Chgs 401-7180-533.42-10 30.75 UTILITIES UNDERGROUND LOC CTR MISCELLANEOUS SERVICES 401-7180-533.49-90 36.59 VERIZON WIRELESS City Blackberry Bill 401-7180-533.42-10 74.66 WAGNER-SMITH EQUIPMENT CO ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 266.06 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 256.38 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 132.30 ELECTRICAL EQUIP&SUPPLY 401-7180-533.35-01 226.38 WESCO DISTRIBUTION INC ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 1,170.46 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 146.32 WESTERN SYSTEMS, INC ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 184.59 ELECTRICAL EQUIP&SUPPLY 401-7180-533.34-02 289.06 Public Works-Electric Electric Operations Division Total: $154,067.16 Public Works-Electric Department Total: $156,679.42 Electric Utility Fund Fund Total: $2,244,796.51 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 402-0000-237.00-00 8.61 Division Total: $8.61 Department Total: $8.61 ADVANCED TRAVEL Training-R Becker 402-7380-534.43-10 162.39 BANK OF NEW YORK-DEBT SVC WIRE PORANGWATR09-DEBT SVC PMT 402-7380-592.83-10 24,190.00 PORANGWREF13-DEBT SVC W 402-7380-592.83-10 55,679.39 PORANGWAT10-DEBT SVC WIRE 402-7380-592.83-10 70,701.21 BAXTER AUTO PARTS#15 PAINTS,COATI N GS,WALLPAPER 402-7380-534.31-01 27.78 CENTURYLINK-QWEST 04-23 a/c 206T411255315B 402-7380-534.42-10 64.59 04-14 a/c 3604571270975B 402-7380-534.42-10 189.63 04-23 A/C 206T310164584B 402-7380-534.42-10 25.04 04-16 A/C 206T359336570B 402-7380-534.42-10 25.04 04-23 A/C 206T302306084B 402-7380-534.42-10 18.35 CONSOLIDATED TECH SERVICES April SCAN Charges 402-7380-534.42-10 4.56 DEFUSCO INDUSTRIAL SUPPLY ROAD/HWY EQUIP EARTH,GRD 402-7380-534.35-01 832.25 Page 15 E - 25 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount DELL MARKETING LP COMPUTER HARDWARE&PERI PHI 402-7380-534.31-60 203.24 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 402-7380-534.49-50 17,537.24 EDGE ANALYTICAL TESTING&CALIBRATION SERVI 402-7380-534.41-50 122.00 TESTING&CALIBRATION SERVI 402-7380-534.41-50 122.00 FCS GROUP CONSULTING SERVICES 402-7380-534.41-50 1,751.41 FEDERAL EXPRESS CORP Shipping Chgs 402-7380-534.42-10 178.92 L&L TOOL SPECIALTIES HAND TOOLS ,POW&NON POWER 402-7380-534.35-01 158.10 PLATT ELECTRIC SUPPLY INC Unit Heater 402-7380-534.31-20 671.91 PUD#1 OF CLALLAM COUNTY Crown Z Water Rd 402-7380-534.47-10 23.27 SUNSET DO-IT BEST HARDWARE PIPE FITTINGS 402-7380-534.31-01 122.31 FASTENERS, FASTENING DEVS 402-7380-534.35-01 47.38 ELECTRICAL EQUIP&SUPPLY 402-7380-534.35-01 43.40 ELECTRICAL EQUIP&SUPPLY 402-7380-534.35-01 43.40 HAND TOOLS ,POW&NON POWER 402-7380-534.35-01 80.88 SWAIN'S GENERAL STORE INC JANITORIAL SUPPLIES 402-7380-534.31-01 102.64 THURMAN SUPPLY PIPE FITTINGS 402-7380-534.34-02 23.34 PIPE AND TUBING 402-7380-534.34-02 39.54 TWISS ANALYTICAL LABORATORIES TESTING&CALIBRATION SERVI 402-7380-534.41-50 22.50 TESTING&CALIBRATION SERVI 402-7380-534.41-50 215.00 TESTING&CALIBRATION SERVI 402-7380-534.41-50 215.00 USA BLUEBOOK FIRST AID&SAFETY EQUIP. 402-7380-534.31-01 768.72 PUMPS&ACCESSORIES 402-7380-534.31-20 388.35 PUMPS&ACCESSORIES 402-7380-534.31-20 189.26 UTILITIES UNDERGROUND LOC CTR MISCELLANEOUS SERVICES 402-7380-534.49-90 36.57 VERIZON WIRELESS City Blackberry Bill 402-7380-534.42-10 54.75 Public Works-Water Water Division Total: $175,081.36 Public Works-Water Department Total: $175,081.36 Water Fund Fund Total: $175,089.97 APSCO INC PIPE FITTINGS 403-0000-237.00-00 -35.59 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 403-0000-237.00-00 119.71 PRO PEST PRODUCTS EXTERNAL LABOR SERVICES 403-0000-237.00-00 -26.43 Division Total: $57.69 Department Total: $57.69 ADVANCED TRAVEL Training-Hartley 403-7480-535.43-10 563.88 ALDERGROVE CONSTRUCTION INC ROADSIDE,GRNDS,REC, PARK 403-7480-535.48-10 360.97 ANGELES MILLWORK&LUMBER CO MISCELLANEOUS PRODUCTS 403-7480-535.31-20 101.98 APSCO INC PIPE FITTINGS 403-7480-535.31-20 459.24 ASSOCIATED PETROLEUM PRODUCTS, IIFUEL,OIL,GREASE, & LUBES 403-7480-535.32-11 1,696.19 FINANCIAL SERVICES 403-7480-535.49-90 125.59 BANK OF NEW YORK-DEBT SVC WIRE PORANGWATR09-DEBT SVC PMT 403-7480-592.83-10 96,760.00 PORANGWREF13-DEBT SVC W 403-7480-592.83-10 22,742.28 PORANGWAT10-DEBT SVC WIRE 403-7480-592.83-10 39,882.13 Page 16 E - 26 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount BRANOM INSTRUMENT COMPANY EQUIP MAINT& REPAIR SERV 403-7480-535.31-20 1,351.75 CANON USA, INC OFFICE MACHINES&ACCESS 403-7480-535.45-31 174.64 CENTURYLINK-QWEST 04-14 a/c 3604574859247B 403-7480-535.42-10 86.77 04-14 a/c 3604576315689B 403-7480-535.42-10 86.89 04-16 a/c 206T325585090B 403-7480-535.42-10 54.40 04-16 a/c 206T329544912B 403-7480-535.42-10 54.40 04-23 A/C 206T310164584B 403-7480-535.42-10 22.26 04-16 A/C 206T359336570B 403-7480-535.42-10 22.26 04-23 A/C 206T302306084B 403-7480-535.42-10 16.31 CONSOLIDATED TECH SERVICES April SCAN Charges 403-7480-535.42-10 9.19 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 403-7480-535.49-50 11,564.70 DEZURIK WATER CONTROLS PLUMBING EQUIP FIXT,SUPP 403-7480-535.31-20 16,151.60 ENVIRO CLEAN EQUIPMENT PUMPS&ACCESSORIES 403-7480-535.42-10 165.39 WATER SEWAGE TREATMENT EQ403-7480-535.48-10 2,200.72 FASTENAL INDUSTRIAL HARDWARE,AND ALLIED ITEMS 403-7480-535.31-20 38.59 HARDWARE,AND ALLIED ITEMS 403-7480-535.31-20 93.51 FCS GROUP CONSULTING SERVICES 403-7480-535.41-50 1,379.25 FEDERAL EXPRESS CORP Shipping Chgs 403-7480-535.42-10 60.58 FERGUSON ENTERPRISES INC PIPE FITTINGS 403-7480-535.31-20 5.38 PIPE FITTINGS 403-7480-535.31-20 2,752.26 PIPE FITTINGS 403-7480-535.31-20 165.45 GRAINGER BUILDING MAINT&REPAIR SER 403-7480-535.35-01 269.47 HACH COMPANY WATER SEWAGE TREATMENT EQ403-7480-535.31-01 954.21 HEARTLINE ROAD/HWY MAT NONASPHALTIC 403-7480-535.31-01 214.63 ROAD/HWY MAT NONASPHALTIC 403-7480-535.31-01 107.32 ROAD/HWY MAT NONASPHALTIC 403-7480-535.31-20 214.63 LINCOLN STREET STATION SHIPPING AND HANDLING 403-7480-535.42-10 14.82 NATIONAL SAFETY INC FIRST AID&SAFETY EQUIP. 403-7480-535.31-01 68.72 FIRST AID&SAFETY EQUIP. 403-7480-535.31-20 521.34 PLUMBING EQUIP FIXT,SUPP 403-7480-535.41-50 298.08 OLYMPIC LAUNDRY&DRY CLEANERS RAGS,SHOP TOWELS,WIPING 403-7480-535.31-01 30.35 OLYMPIC STATIONERS INC COMPUTER ACCESSORIES&SUPF403-7480-535.31-01 66.76 PEACOCK,WILLIAM R AUTO SHOP EQUIPMENT&SUP 403-7480-535.43-10 1,245.00 PORT ANGELES CITY TREASURER Cert Mail-Freed 403-7480-535.41-10 12.98 Cert Mail-Young 403-7480-535.42-10 17.80 Cert mail-Freed 403-7480-535.42-10 9.40 Cert Mail-Hart 403-7480-535.42-10 18.95 Cert mail-Freed 403-7480-535.42-10 12.98 PRO PEST PRODUCTS EXTERNAL LABOR SERVICES 403-7480-535.31-01 341.11 PUD#1 OF CLALLAM COUNTY Brook Ave 403-7480-535.47-10 211.52 QUALITY CONTROL SERVICES INC MISC PROFESSIONAL SERVICE 403-7480-535.41-50 1,235.00 SUNSET DO-IT BEST HARDWARE POISONS:AGRICUL& INDUSTR 403-7480-535.31-01 30.14 Page 17 E - 27 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount SUNSET DO-IT BEST HARDWARE PIPE FITTINGS 403-7480-535.31-20 86.87 HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 36.63 SWAIN'S GENERAL STORE INC HAND TOOLS ,POW&NON POWER 403-7480-535.31-01 17.27 THURMAN SUPPLY Item Return 403-7480-535.31-01 -7.47 USA BLUEBOOK CHEM RAW MATERIALS MFG 403-7480-535.31-01 195.82 UTILITIES UNDERGROUND LOC CTR ENVIRONMENTAL&ECOLOGICAL 403-7480-535.49-90 36.57 VERIZON WIRELESS 04-22 a/c 571136182-00004 403-7480-535.42-10 164.89 City Blackberry Bill 403-7480-535.42-10 58.71 Public Works-WW/Storm% Wastewater Division Total: $205,633.06 Public Works-WW/Stormwtr Department Total: $205,633.06 Wastewater Fund Fund Total: $205,690.75 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 404-0000-237.00-00 68.98 Excise Tax Return-March 404-0000-237.10-00 -68.98 Division Total: $0.00 Department Total: $0.00 ADVANCED TRAVEL Meeting-Freilich 404-7538-537.43-10 181.35 ANGELES MILLWORK&LUMBER CO SUPPLIES 404-7538-537.31-01 50.80 CENTURYLINK-QWEST 04-23 A/C 206T302306084B 404-7538-537.42-10 8.16 CONSOLIDATED TECH SERVICES April SCAN Charges 404-7538-537.42-10 5.73 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 404-7538-537.49-50 11,295.21 FCS GROUP CONSULTING SERVICES 404-7538-537.41-50 342.27 KAMAN INDUSTRIAL TECHNOLOGIES PIPE FITTINGS 404-7538-537.31-01 17.98 RADIOSHACK HARDWARE,AND ALLIED ITEMS 404-7538-537.31-01 37.93 SWAIN'S GENERAL STORE INC SUPPLIES 404-7538-537.31-01 29.86 UNITEC CORPORATION DATA PROC SERV&SOFTWARE 404-7538-537.41-50 1,060.42 USA BLUEBOOK PUMPS&ACCESSORIES 404-7538-537.49-90 843.98 Public Works-Solid Waste SW- Transfer Station Division Total: $13,873.69 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 404-7580-537.42-10 22.26 04-16 A/C 206T359336570B 404-7580-537.42-10 22.26 04-23 A/C 206T302306084B 404-7580-537.42-10 8.16 CONSOLIDATED TECH SERVICES April SCAN Charges 404-7580-537.42-10 24.47 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 404-7580-537.49-50 12,444.47 EDGE ANALYTICAL TESTING&CALIBRATION SERVI 404-7580-537.41-50 388.00 FCS GROUP CONSULTING SERVICES 404-7580-537.41-50 688.02 CONSULTING SERVICES 404-7580-537.41-51 13.27 SWAIN'S GENERAL STORE INC SHOES AND BOOTS 404-7580-537.31-01 145.60 VERIZON WIRELESS City Blackberry Bill 404-7580-537.42-10 98.96 Public Works-Solid Waste Solid Waste-Collections Division Total: $13,855.47 FEDERAL EXPRESS CORP Shipping Chgs 404-7585-537.42-10 6.08 Public Works-Solid Waste Solid Waste-Landfill Division Total: $6.08 Public Works-Solid Waste Department Total: $27,735.24 Solid Waste-Collections Fund Total: $27,735.24 Page 18 E - 28 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount FEDERAL EXPRESS CORP Shipping Chgs 405-7538-537.42-10 54.74 Public Works-Solid Waste SW- Transfer Station Division Total: $54.74 ASPECT CONSULTING, LLC CONSULTING SERVICES 405-7585-537.41-50 9,492.09 CONSULTING SERVICES 405-7585-537.41-50 8,110.03 Public Works-Solid Waste Solid Waste-Landfill Division Total: $17,602.12 Public Works-Solid Waste Department Total: $17,656.86 Solid Waste-LF/Trf Stn Fund Total: $17,656.86 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 406-0000-237.00-00 47.88 Division Total: $47.88 Department Total: $47.88 BANK OF NEW YORK-DEBT SVC WIRE PORANGWAT10-DEBT SVC WIRE 406-7412-592.83-10 6,510.41 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 406-7412-538.42-10 5.56 04-16 A/C 206T359336570B 406-7412-538.42-10 5.56 04-23 A/C 206T302306084B 406-7412-538.42-10 4.08 CLALLAM CNTY ROAD DEPT TESTING&CALIBRATION SERVI 406-7412-538.41-50 436.33 CONSOLIDATED TECH SERVICES April SCAN Charges 406-7412-538.42-10 4.78 DATABAR INCORPORATED SUPPLIES 406-7412-538.44-10 17.22 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 406-7412-538.49-50 467.20 ENVIRONMENTAL INFORMATION MGMT ENVIRONMENTAL&ECOLOGICAL 406-7412-538.48-10 81.41 FCS GROUP CONSULTING SERVICES 406-7412-538.41-50 3,892.90 SUNSET DO-IT BEST HARDWARE HARDWARE,AND ALLIED ITEMS 406-7412-538.35-01 14.63 UTILITIES UNDERGROUND LOC CTR MISCELLANEOUS SERVICES 406-7412-538.49-90 36.57 VERIZON WIRELESS 04-22 a/c 571136182-00001 406-7412-538.42-10 29.26 Public Works-WW/Storm% Stormwater Division Total: $11,505.91 Public Works-WW/Stormwtr Department Total: $11,505.91 Stormwater Fund Fund Total: $11,553.79 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 409-0000-237.00-00 42.60 Division Total: $42.60 Department Total: $42.60 BOUND TREE MEDICAL, LLC MEDICAL SUPPLIES 409-6025-526.31-02 435.25 MEDICAL SUPPLIES 409-6025-526.31-02 71.48 MEDICAL SUPPLIES 409-6025-526.31-13 616.78 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 409-6025-526.42-10 33.39 04-16 A/C 206T359336570B 409-6025-526.42-10 33.39 04-23 A/C 206T302306084B 409-6025-526.42-10 24.47 CHURCH,JEREMY FIRST AID CLASS 5/6/14 CR 409-6025-526.31-08 200.00 CLALLAM CNTY EMS 2014 ANNUAL PAYMENT 409-6025-526.41-50 250.00 Fresenius Kabi USA, LLC MEDICAL SUPPLIES 409-6025-526.31-13 400.00 NATIONAL SAFETY COUNCIL RENEWAL CERTIFICATION 409-6025-526.31-08 160.00 OLYMPIC OXYGEN K SIZE OXYGEN TANK 409-6025-526.31-13 10.24 REIFENSTAHL, PATRICIA FIRST AID CLASS 4/26/14 409-6025-526.31-08 200.00 REIMBURSE FOR CPR CLASS 4 409-6025-526.31-08 50.00 Page 19 E - 29 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount VERIZON WIRELESS 04-15 a/c 264395724-00001 409-6025-526.42-10 132.80 ZOLL MEDICAL CORPORATION CABLE 409-6025-526.31-02 377.77 Fire Department Medic I Division Total: $2,995.57 Fire Department Department Total: $2,995.57 Medic I Utility Fund Total: $3,038.17 CASCADIA LAW GROUP MISC PROFESSIONAL SERVICE 413-7481-535.41-50 4,180.50 MISC PROFESSIONAL SERVICE 413-7481-535.41-50 1,435.50 Public Works-WW/Storm% Wastewater Remediation Division Total: $5,616.00 Public Works-WW/Stormwtr Department Total: $5,616.00 Harbor Clean Up Fund Total: $5,616.00 AIR FLO HEATING COMPANY INC CITY REBATE 421-7121-533.49-86 1,500.00 ALL WEATHER HEATING&COOLING BUILDING MAINT&REPAIR SER 421-7121-533.49-86 124.66 BUILDING MAINT&REPAIR SER 421-7121-533.49-86 405.14 BUILDING MAINT&REPAIR SER 421-7121-533.49-86 342.81 BUILDING MAINT&REPAIR SER 421-7121-533.49-86 373.98 BUILDING MAINT&REPAIR SER 421-7121-533.49-86 93.50 CITY REBATE 421-7121-533.49-86 1,500.00 ANGELES HEATING, INC CITY REBATE 421-7121-533.49-86 1,500.00 CENTURYLINK-QWEST 04-23 A/C206T310164584B 421-7121-533.42-10 5.63 04-16 A/C206T359336570B 421-7121-533.42-10 5.63 04-23 A/C206T302306084B 421-7121-533.42-10 4.08 CLALLAM TRANSIT SYSTEM CITY REBATE 421-7121-533.49-86 2,088.00 CONSOLIDATED TECH SERVICES April SCAN Charges 421-7121-533.42-10 4.12 COZI HOMES CONSTRUCTION, INC CITY REBATE 421-7121-533.49-86 2,664.44 DAVE'S HEATING&COOLING SVC CITY REBATE 421-7121-533.49-86 1,500.00 CITY REBATE 421-7121-533.49-86 1,500.00 CITY REBATE 421-7121-533.49-86 1,500.00 CITY REBATE 421-7121-533.49-86 1,500.00 CITY REBATE 421-7121-533.49-86 800.00 EVERWARM HEARTH&HOME INC CITY REBATE 421-7121-533.49-86 132.48 FLUID A CLEAR RESULT CITY REBATE 421-7121-533.49-86 10,124.50 CITY REBATE 421-7121-533.49-86 25,894.70 GLASS SERVICES CO INC CITY REBATE 421-7121-533.49-86 917.76 CITY REBATE 421-7121-533.49-86 588.00 CITY REBATE 421-7121-533.49-86 1,693.98 CITY REBATE 421-7121-533.49-86 588.00 CITY REBATE 421-7121-533.49-86 540.00 CITY REBATE 421-7121-533.49-86 492.00 CITY REBATE 421-7121-533.49-86 324.00 CITY REBATE 421-7121-533.49-86 576.00 MATHEWS GLASS CO INC CITY REBATE 421-7121-533.49-86 236.64 CITY REBATE 421-7121-533.49-86 640.02 Page 20 E - 30 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount MATHEWS GLASS CO INC CITY REBATE 421-7121-533.49-86 640.02 CITY REBATE 421-7121-533.49-86 640.02 CITY REBATE 421-7121-533.49-86 784.32 BRENDA SMITH CITY REBATE 421-7121-533.49-86 15.00 DAVE GRONNING CITY REBATE 421-7121-533.49-86 115.00 DEAN MANGIANTINI CITY REBATE 421-7121-533.49-86 1,584.54 GREGORY BONDY CITY REBATE 421-7121-533.49-86 115.00 HEATHER MONTE CITY REBATE 421-7121-533.49-86 1,053.92 KATIE HOSTETLER CITY REBATE 421-7121-533.49-86 50.00 MARY RUPPRECHT CITY REBATE 421-7121-533.49-86 50.00 PATRICIA&CRAIG PATTISON CITY REBATE 421-7121-533.49-86 540.00 REBECCA LIFFICK CITY REBATE 421-7121-533.49-86 100.00 SANDIE BARNHART CITY REBATE 421-7121-533.49-86 50.00 SUNNY HOLTHE CITY REBATE 421-7121-533.49-86 50.00 PACIFIC OFFICE EQUIPMENT INC FURNITURE, OFFICE 421-7121-533.35-01 452.03 PENINSULA HEAT INC CITY REBATE 421-7121-533.49-86 800.00 PLATT ELECTRIC SUPPLY INC ELECTRICAL EQUIP&SUPPLY 421-7121-533.49-86 36.66 ELECTRICAL EQUIP&SUPPLY 421-7121-533.49-86 192.57 ELECTRICAL EQUIP&SUPPLY 421-7121-533.49-86 370.53 RADIO PACIFIC INC(KONP) COMMUNICATIONS/MEDIA SERV 421-7121-533.44-10 555.00 Public Works-Electric Conservation Division Total: $68,354.68 Public Works-Electric Department Total: $68,354.68 Conservation Fund Total: $68,354.68 COLUMBIA TELECOMMUNICATIONS COR CONSULTING SERVICES 431-7130-538.41-50 310.00 FCS GROUP CONSULTING SERVICES 431-7130-538.41-50 144.91 CONSULTING SERVICES 431-7130-538.41-80 2.82 PUD#1 OF CLALLAM COUNTY Power Supply 1 431-7130-538.47-10 35.35 Public Works-Electric Telecommunications Division Total: $493.08 Public Works-Electric Department Total: $493.08 Telecommunications Fund Fund Total: $493.08 NOVINIUM, INC Release Retainage 451-0000-223.40-00 2,401.37 Division Total: $2,401.37 Department Total: $2,401.37 DELL MARKETING LP COMPUTER HARDWARE&PERI PHI 451-7188-594.65-10 523.05 GENERAL PACIFIC INC WATER SEWAGE TREATMENT EQ451-7188-594.65-10 2,710.00 WATER SEWAGE TREATMENT EQ451-7188-594.65-10 4,874.21 WATER SEWAGE TREATMENT EQ451-7188-594.65-10 915.98 SUNGARD PUBLIC SECTOR COMPUTERS,DP&WORD PROC. 451-7188-594.65-10 1,000.00 Public Works-Electric Electric Projects Division Total: $10,023.24 Public Works-Electric Department Total: $10,023.24 Electric Utility CIP Fund Total: $12,424.61 Page 21 E - 31 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount DELL MARKETING LP COMPUTER HARDWARE&PERI PHI 452-7388-594.65-10 261.53 GENERAL PACIFIC INC WATER SEWAGE TREATMENT EQ452-7388-594.65-10 1,355.00 WATER SEWAGE TREATMENT EQ452-7388-594.65-10 2,895.09 Public Works-Water Water Projects Division Total: $4,511.62 Public Works-Water Department Total: $4,511.62 Water Utility CIP Fund Total: $4,511.62 DELL MARKETING LP COMPUTER HARDWARE&PERI PHI 453-7488-594.65-10 261.53 FEDERAL EXPRESS CORP Shipping Chgs 453-7488-594.42-10 5.70 GENERAL PACIFIC INC WATER SEWAGE TREATMENT EQ453-7488-594.65-10 1,355.00 WATER SEWAGE TREATMENT EQ453-7488-594.65-10 2,895.09 Public Works-WW/Storm% Wastewater Projects Division Total: $4,517.32 Public Works-WW/Stormwtr Department Total: $4,517.32 WasteWater Utility CIP Fund Total: $4,517.32 DEPT OF FISH&WILDLIFE ENVIRONMENTAL&ECOLOGICAL 463-7489-594.65-10 150.00 FEDERAL EXPRESS CORP Shipping Chgs 463-7489-594.65-10 5.70 OLYMPIC REGION CLEAN AIR AGCY ENVIRONMENTAL&ECOLOGICAL 463-7489-594.65-10 340.00 VANIR CONSTRUCTION MGMT, INC CONSULTING SERVICES 463-7489-594.65-10 6,677.44 Public Works-WW/Storm% CSO Capital Division Total: $7,173.14 Public Works-WW/Stormwtr Department Total: $7,173.14 CSO Capital Fund Fund Total: $7,173.14 ASSOCIATED PETROLEUM PRODUCTS, IIFUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 7,216.62 FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 6,411.85 BAXTER AUTO PARTS#15 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 146.34 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 11.56 CENTRAL WELDING SUPPLY AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 217.23 COASTAL WEAR PRODUCTS, INC AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 1,493.32 COPY CAT GRAPHICS AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 476.96 CUMMINS NORTHWEST INC AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 589.35 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 501-0000-237.00-00 383.98 FASTENAL INDUSTRIAL AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 78.50 FIRESTONE COMPLETE AUTO CARE AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 241.91 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 458.19 MASCO PETROLEUM, INC FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 879.25 MCMASTER-CARR SUPPLY CO AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 237.17 AUTO&TRUCK ACCESSORIES 501-0000-237.00-00 -18.38 AUTO&TRUCK MAINT. ITEMS 501-0000-237.00-00 -42.19 MOTOR TRUCKS INC AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 86.46 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 45.62 NAPA AUTO PARTS AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 63.19 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 20.90 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 89.53 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 15.15 Page 22 E - 32 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount NAPA AUTO PARTS AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 10.79 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 125.74 O'REILLYAUTO PARTS AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 266.67 HOSES,ALL KINDS 501-0000-141.40-00 3.02 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 11.35 HOSES,ALL KINDS 501-0000-141.40-00 56.44 OWEN EQUIPMENT AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 257.38 QUALITY 4X4 TRUCK SUPPLY AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 284.81 SEATTLE AUTOMOTIVE DISTRIBUTING AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 138.77 SIRENNET.COM AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 84.94 AUTO&TRUCK MAINT. ITEMS 501-0000-237.00-00 -6.58 SIX ROBBLEES'INC AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 346.88 AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 333.66 AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 84.55 AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 651.05 SUNSET DO-IT BEST HARDWARE AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 36.08 TACOMA DODGE CHRYSLER JEEP AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 70.43 VALLEY FREIGHTLINER INC AUTO&TRUCK ACCESSORIES 501-0000-141.40-00 433.49 WURTH USA INC AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 190.46 ZEP MANUFACTURING COMPANY AUTO&TRUCK MAINT. ITEMS 501-0000-141.40-00 278.15 Division Total: $22,760.59 Department Total: $22,760.59 ARAMARK LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 192.87 LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 135.89 ASSOCIATED PETROLEUM PRODUCTS, IIFUEL,OIL,GREASE, & LUBES 501-7630-548.32-13 19.35 BAXTER AUTO PARTS#15 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 11.43 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 7.37 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 27.32 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 3.86 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 21.67 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 501-7630-548.42-10 19.48 04-16 A/C 206T359336570B 501-7630-548.42-10 19.48 04-23 A/C 206T302306084B 501-7630-548.42-10 14.28 CONSOLIDATED TECH SERVICES April SCAN Charges 501-7630-548.42-10 6.47 EVERGREEN TOWING EXTERNAL LABOR SERVICES 501-7630-548.34-02 135.50 FAR-WEST MACHINE&HYDRAULICS AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 14.42 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 221.66 EXTERNAL LABOR SERVICES 501-7630-548.34-02 3.25 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 998.47 FEDERAL EXPRESS CORP Shipping Chgs 501-7630-548.42-10 9.20 HUGHES FIRE EQUIPMENT INC AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 337.51 J B'S UPHOLSTERY AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 50.41 Page 23 E - 33 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount J B'S UPHOLSTERY EXTERNAL LABOR SERVICES 501-7630-548.34-02 316.52 KAMAN INDUSTRIAL TECHNOLOGIES AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 23.46 LES SCHWAB TIRE CENTER AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 433.84 EXTERNAL LABOR SERVICES 501-7630-548.34-02 27.84 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 1,279.59 EXTERNAL LABOR SERVICES 501-7630-548.34-02 45.53 LINCOLN INDUSTRIAL CORP METALS,BARS,PLATES,RODS 501-7630-548.34-02 18.17 METALS,BARS,PLATES,RODS 501-7630-548.34-02 78.59 MATCO TOOLS AUTO&TRUCK MAINT. ITEMS 501-7630-548.35-01 191.22 AUTO&TRUCK MAINT. ITEMS 501-7630-548.35-01 433.55 MCMASTER-CARR SUPPLY CO AUTO&TRUCK MAINT. ITEMS 501-7630-548.31-01 544.49 N C MACHINERY CO AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 1,002.35 NAPA AUTO PARTS AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 5.03 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 12.25 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 -89.43 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 9.32 PORT ANGELES CITY TREASURER Pool car fuel-Divelbiss 501-7630-548.32-13 20.00 Pool car fuel-Hartley 501-7630-548.32-13 40.02 Pool car fuel-Hartley 501-7630-548.32-13 40.00 Crack sealer trailer-Mc 501-7630-548.34-02 28.75 Vehicle license police ca 501-7630-594.64-10 35.75 4x4 van license-McBride 501-7630-594.64-10 35.75 PORT ANGELES TIRE FACTORY AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 33.77 EXTERNAL LABOR SERVICES 501-7630-548.34-02 81.79 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 17.75 EXTERNAL LABOR SERVICES 501-7630-548.34-02 81.79 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 102.04 EXTERNAL LABOR SERVICES 501-7630-548.34-02 324.06 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 17.96 EXTERNAL LABOR SERVICES 501-7630-548.34-02 83.96 EXTERNAL LABOR SERVICES 501-7630-548.34-02 30.90 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 223.84 EXTERNAL LABOR SERVICES 501-7630-548.34-02 505.63 EXTERNAL LABOR SERVICES 501-7630-548.34-02 44.45 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 20.40 EXTERNAL LABOR SERVICES 501-7630-548.34-02 173.93 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 28.58 EXTERNAL LABOR SERVICES 501-7630-548.34-02 207.53 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 17.86 EXTERNAL LABOR SERVICES 501-7630-548.34-02 81.79 PRICE FORD LINCOLN AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 45.03 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 5.64 Page 24 E - 34 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount QUALITY 4X4 TRUCK SUPPLY AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 77.48 EXTERNAL LABOR SERVICES 501-7630-548.34-02 16.26 RUDDELL AUTO MALL EXTERNAL LABOR SERVICES 501-7630-548.34-02 64.18 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 1.90 RUDY'S AUTOMOTIVE AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 390.24 EXTERNAL LABOR SERVICES 501-7630-548.34-02 299.36 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 505.73 EXTERNAL LABOR SERVICES 501-7630-548.34-02 389.50 SNAP-ON TOOLS-CHUGGER DEANE RENTAL/LEASE EQUIPMENT 501-7630-548.48-02 1,082.92 STEVE'S MUFFLER SHOP AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 251.13 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 775.49 EXTERNAL LABOR SERVICES 501-7630-548.34-02 140.92 SUNSET DO-IT BEST HARDWARE AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 1.63 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 17.15 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 2.61 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 7.60 SWAIN'S GENERAL STORE INC AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 5.35 TACOMA DODGE CHRYSLER JEEP AUTO&TRUCK ACCESSORIES 501-7630-548.34-02 17.61 TACOMA SCREW PRODUCTS INC AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 12.52 VALLEY FREIGHTLINER INC AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 -182.39 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 -274.85 AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 430.60 WESTERN SYSTEMS&FABRICATION AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 1,960.41 WILDER TOYOTA INC AUTO&TRUCK MAINT. ITEMS 501-7630-548.34-02 39.63 EXTERNAL LABOR SERVICES 501-7630-548.34-02 56.37 Public Works-Equip Svcs Equipment Services Division Total: $15,000.53 Public Works-Equip Svcs Department Total: $15,000.53 Equipment Services Fund Total: $37,761.12 CLEVERBRIDGE, INC DATA PROC SERV&SOFTWARE 502-0000-237.00-00 -274.93 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 502-0000-237.00-00 46.45 I.T.XCHANGE CORP COMPUTER HARDWARE&PERI PHI 502-0000-237.00-00 -7.35 COMPUTER HARDWARE&PERI PHI 502-0000-237.00-00 -1,678.29 COMPUTER HARDWARE&PERI PHI 502-0000-237.00-00 -51.52 PORT ANGELES CITY TREASURER Motherboard -Matthews 502-0000-237.00-00 -1.68 Duo Processor- Matthews 502-0000-237.00-00 -0.68 Division Total: -$1,968.00 Department Total: -$1,968.00 CENTURYLINK-QWEST 04-23 A/C 206T310164584B 502-2081-518.42-10 25.04 04-16 A/C 206T359336570B 502-2081-518.42-10 25.04 04-23 A/C 206T302306084B 502-2081-518.42-10 18.35 CLEVERBRIDGE, INC DATA PROC SERV&SOFTWARE 502-2081-518.48-02 3,547.93 CONSOLIDATED TECH SERVICES April SCAN Charges 502-2081-518.42-10 41.67 Page 25 E - 35 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount DUNN, RICKY DATA PROC SERV&SOFTWARE 502-2081-518.41-50 300.00 DATA PROC SERV&SOFTWARE 502-2081-518.41-50 425.00 I.T.XCHANGE CORP COMPUTER HARDWARE&PERI PHI 502-2081-518.48-10 664.89 COMPUTER HARDWARE&PERI PHI 502-2081-518.48-10 94.90 COMPUTER HARDWARE&PERI PHI 502-2081-518.48-10 10,789.05 COMPUTER HARDWARE&PERI PHI 502-2081-518.48-10 -836.05 PORT ANGELES CITY TREASURER Motherboard -Matthews 502-2081-518.31-60 21.67 Duo Processor- Matthews 502-2081-518.31-60 8.77 Finance Department Information Technologies Division Total: $15,126.26 I.T.XCHANGE CORP COMPUTER HARDWARE&PERI PHI 502-2082-594.65-10 21,657.89 Finance Department IT Capital Projects Division Total: $21,657.89 Finance Department Department Total: $36,784.15 Information Technology Fund Total: $34,816.15 AWC EMPLOYEE BENEFITS TRUST Med Den/Vis Premiums 503-1631-517.46-30 249,935.98 LT Disability 503-1631-517.46-31 4,246.30 Life Insurance 503-1631-517.46-32 1,714.17 L1 Med/Vis Premiums 503-1631-517.46-34 9,733.09 NW ADMIN TRANSFER ACCT S/NS/WT 503-1631-517.46-33 72,033.50 RETIREES 503-1631-517.46-34 9,659.40 Self Insurance Other Insurance Programs Division Total: $347,322.44 Self Insurance Department Total: $347,322.44 Self-Insurance Fund Fund Total: $347,322.44 AWC EMPLOYEE BENEFITS TRUST Retiree Premiums 602-6221-517.46-35 4,011.32 Fireman's Pension Fireman's Pension Division Total: $4,011.32 Fireman's Pension Department Total: $4,011.32 Firemen's Pension Fund Total: $4,011.32 DEPARTMENT OF REVENUE-WIRES Excise Tax Return-March 650-0000-237.10-00 107.65 PA DOWNTOWN ASSN APR 2014 DECAL SALES 650-0000-231.91-00 347.15 APR 2014 DECAL SALES 650-0000-231.91-00 -347.15 APR 2014 DECAL SALES 650-0000-231.91-00 347.15 APR 2014 PBIA DUES 650-0000-231.92-00 5,728.60 APR 2014 PBIA DUES 650-0000-231.92-00 -5,728.60 APR 2014 PBIA DUES 650-0000-231.92-00 5,728.60 Division Total: $6,183.40 Department Total: $6,183.40 Off Street Parking Fund Fund Total: $6,183.40 AFSCME LOCAL 1619 PAYROLL SUMMARY 920-0000-231.54-40 324.00 ASSOCIATION OF WASHINGTON CITIES AWC SUPP LIFE INSURANCE 920-0000-231.53-30 405.90 BROWN&BROWN OF WASHINGTON PAYROLL SUMMARY 920-0000-231.53-40 1,375.92 FIREFIGHTER'S LOCAL 656 PAYROLL SUMMARY 920-0000-231.54-30 1,896.09 GUARANTEED EDUCATION TUITION PAYROLL SUMMARY 920-0000-231.56-95 263.50 Page 26 E - 36 Date:5/13/2014 City of Port Angeles City Council Expenditure Report From:412612014 To: 51912014 Vendor Description Account Number Invoice Amount IBEW LOCAL 997 PAYROLL SUMMARY 920-0000-231.54-20 1,468.82 LEOFF P/R Deductions pe 04-27 920-0000-231.51-21 24,029.02 MONTANA CSED SDU PAYROLL SUMMARY 920-0000-231.56-20 92.30 OFFICE OF SUPPORT ENFORCEMENT P/R Deductions pe 04-27 920-0000-231.56-20 716.24 P/R Deductions pe 04-27 920-0000-231.56-20 169.85 PERS P/R Deductions pe 04-27 920-0000-231.51-10 1,650.20 P/R Deductions pe 04-27 920-0000-231.51-11 12,447.93 P/R Deductions pe 04-27 920-0000-231.51-12 50,637.07 POLICE ASSOCIATION PAYROLL SUMMARY 920-0000-231.55-10 426.00 UNITED WAY(PAYROLL) PAYROLL SUMMARY 920-0000-231.56-10 469.00 WSCCCE AFSCME AFL-CIO PAYROLL SUMMARY 920-0000-231.54-40 4,672.98 Division Total: $101,044.82 Department Total: $101,044.82 Payroll Clearing Fund Total: $101,044.82 Totals for check period From: 4/26/2014 To: 5/9/2014 $3,496,612.49 Page 27 E - 37 El all FOR A I' , `- W A S H I N G T O N, U. S. A. � CITY COUNCIL MEMO DATE: May 20, 2014 To: City Council FROM: TERRY K. GALLAGHER,CHIEF OF POLICE SUBJECT: 2014 JAG GRANT OPPORTUNITY-POLICE DEPARTMENT Summary: The Bureau of Justice Assistance (BJA)has announced that the FY 2014 Edward Byrne Memorial Justice Assistance Grant (JAG)local solicitation is now available. Port Angeles has been identified as eligible for funding in the amount of$10,195.00. Applications are due by June 10, 2014. The BJA has determined that the City of Port Angeles is in a"funding disparity" area. As such we are required to promulgate an Interlocal Agreement with Clallam County and apply for the award with a single,joint application. The grant funds must be expended in partnership with Clallam County. There is no grant matching funds requirement. Recommendation: Authorize the City Manager to sign the attached Interlocal Agreement with Clallam County and authorize the Police Department to accept the 2014 BJA Local JAG grant funds in the amount of$10,195.00, and to spend those funds in cooperation with Clallam County to improve the joint Active Shooter training program. The Edward Byrne Memorial Justice Assistance Grant Program (JAG)was established to streamline justice funding and grant administration and allow eligible agencies to support a broad range of activities designed to control crime based on local needs and conditions. JAG blends the previous Byrne Formula and Local Law Enforcement Block Grant(LLEBG)Programs to provide agencies with the flexibility to prioritize and place justice funds where they are needed most. Port Angeles has been deemed eligible for $10,195.00. We are required to spend the grant money in cooperation with Clallam County. Port Angeles Police Department and the Clallam County Sheriff's Office conduct Active Shooter training jointly to include the sharing of resources necessary to the training. We have agreed to expend the 2014 JAG funds to improve the simmunitions equipment inventory currently on hand so that the training program can be improved. If Council authorizes PAPD to finalize the grant application and accept the funding, PAPDand the CCSO will use the funds to purchase the equipment as out lined below. There is no match requirement for this grant. PW_101.01 [Revised 07/20/04] E - 38 Clallam County Sheriffs Office and Port Angeles Police Department FY 2014 LOCAL JAG DISPARATE FUNDING EXPENDITURE PLAN Quantity Glock Handgun Conversion Kits 2 $800.00 Sig Sauer Handgun Conversion Kit 4 $1,600.00 Patrol Rifle Conversion Kit 4 $3,200.00 Safety Equipment (helmets, eye protection, etc) $900.00 Marking & Blank Training Rounds $1,195.00 Simulator Handgun Conversion 1 $2,500.00 TOTAL $10,195.00 E - 39 THE STATE OF WASHINGTON COUNTY OF CLALLAM KNOW ALL BY THESE PRESENT INTERLOCAL AGREEMENT BETWEEN THE CITY OF PORT ANGELES,WASHINGTON AND CLALLAM COUNTY WASHINGTON 2014 BYRNE JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD This Agreement is made and entered into this day of , 2014, by and between The COUNTY of Clallam, acting by and through its governing body, the Board of Commissioners, hereinafter referred to as COUNTY, and the CITY of Port Angeles, acting by and through its governing body, the City Council, hereinafter referred to as CITY, both of Clallam County, State of Washington, witnesseth: WHEREAS, this Agreement is made under the authority of Chapter 39.34 RCW; and WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body finds that the performance of this Agreement is in the best interests of both parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this agreement: and WHEREAS, the CITY agrees to expend the $10,195 from the JAG award for the enhancement of the Joint Agency Firearms Simmunitions, and Active Shooter Training Program; and WHEREAS, the CITY and COUNTY believe it to be in their best interests to so allocate the JAG funds. NOW THEREFORE, the COUNTY and CITY agree as follows: Section 1. CITY agrees to use $10,195 for the Joint Agency Firearms, Simmunitions and Active Shooter Training to purchase two (2)Glock handgun conversion kits, four(4) Sig-Sauer handgun conversion kits, four(4) rifle conversion kits, safety equipment, marking and blank training rounds, and other conversion kits. CITY agrees to comply with all bid, purchasing, and procurement laws and regulations of the JAG program and the State of Washington. This equipment will support the joint firearms and force options training efforts of the existing Port Angeles Police Department(PAPD) and the Clallam County Sheriffs Department(CCSO). PAPD and CCSO lead a group of local, tribal and federal firearms and force options trainers that meet regularly and work jointly. The CITY will add this equipment to the PAPD inventory, but will make it available to the CCSO upon request. Section 2. Nothing in the performance of this Agreement shall impose any liability for claims against COUNTY other than claims for which liability may be imposed by the Washington Tort Claims Act. Page 1 of 2 E - 40 Section 3. Nothing in the performance of this Agreement shall impose any liability for claims against CITY other than claims for which liability may be imposed by the Washington Tort Claims Act. Section 4. Each party to this agreement will be responsible for its own actions in providing services under this agreement and shall not be liable for any civil liability that may arise from the furnishing of the services by the other party. Section 5. The parties to this Agreement do not intend for any third party to obtain a right by virtue of this Agreement. Section 6. By entering into this Agreement, the parties do not intend to create any obligations express or implied other than those set out herein; further, this Agreement shall not create any rights in any party not a signatory hereto. CITY OF PORT ANGELES COUNTY OF CLALLAM City Manager Chair, Clallam County Board of Commissioners ATTEST: APPROVED AS TO FORM: City Clerk Prosecuting Attorney APPROVED AS TO FORM: City Attorney *By law, the District Attorney's Office may only advise or approve contracts or legal documents on behalf of its clients. It may not advise or approve a contracts or legal document on behalf of other parties. Our view of this document was conducted solely from the legal perspective of our client. Our approval of this document was offered solely for the benefit of our client. Other parties should not rely on this approval and should seek review and approval by their own respective attorney(s). Page 2 of 2 E - 41 A Gfl, WASHINGTON , U . SA �f CITY COUNCIL MEMO DATE: May 20,2014 To: CITY COUNCIL FROM: Craig Fulton, P.E., Director of Public Works and Utilities SUBJECT: Purchase of Turf Sweeper/Vacuum Summary: Funds were included in the 2014 budget in the amount of$28,000 to replace a turf sweeper/vacuum for the Parks Department. An appropriate replacement unit is available from Western Equipment Distributors on state contract 410212 for $32,560 including taxes. Recommendation: Approve and authorize the City Manager to sign a contract with Toro Rake- O-Vac, for the purchase of a new turf sweeper/vacuum machine available on state contract from Western Equipment Distributors for the price of$32,560 and to make minor modifications to the contract, if necessary. Background/Analysis: $28,000 was included in the 2014 budget to replace a turf sweeper/vacuum for the Parks Department. The existing sweeper/vacuum is 14 years old and is no long operable. The hopper is corroded through, and the engine is no longer functioning because of an internal failure. The Parks Department relies on this unit to maintain the ball fields and other groomed turf areas by cleaning leaves, sod plugs and grass clippings from the surface. An appropriate replacement unit, a Toro Rake-O-Vac, is available from Western Equipment Distributors on state contract 410212 for $32,560, including taxes. Since the price is $4,560 more than the amount included in the budget for this purpose, this amount will be taken out of the park equipment replacement reserve fund. Recomandation: Council approve and authorize the City Manager to sign a contract with Toro Rake-O-Vac, for the purchase of a new turf sweeper/vacuum machine available on state contract from Western Equipment Distributors for the price of$32,560 and to make minor modifications to the contract, if necessary. E - 42 10///ORT .; G �pIUV = W A S H I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 20, 2014 To: CITY COUNCIL FROM: Craig Fulton, P.E., Director of Public Works &Utilities SUBJECT: Material Purchase: 95 and 300 Gallon Refuse Containers, Contract SW-14-010 Summary: Bids were received on April 8, 2014 for the purchase of 95 gallon and 300 gallon refuse containers for the Solid Waste Division. Five vendors bid on this material purchase. Otto Environmental Systems was the lowest responsible bidder for the 95 gallon containers. Rotational Molding was the lowest responsible bidder for the 300 gallon containers. Recommendation: Award the 95 gallons refuse containers contract to Otto Environmental Systems in the amount of$19,382.09, and award the 300 gallons refuse containers contract to Rotational Molding in the amount of$16,027.45,including all taxes and expenses. Authorize the City Manager to sign these contracts and to make minor modifications,if necessary. Background/Analysis: Bids were received on April 8, 2014 for both 95 and 300 gallon refuse containers for the Solid Waste Division. This procurement is to replenish the inventory of containers which will be used for replacing broken containers, supplying new homes and businesses, and resourcing special events. Five vendors bid on this material purchase. Otto Environmental Systems was the lowest responsible bidder for 95 gallon containers. Rotational Molding Inc. was the lowest responsible bidder for 300 gallon containers. The results of the bidding shown in the table below are without state and local sales tax since the procurement specified that the City would pay the taxes: Purchase Contract, SW-14-010 (Prices not including sales tax) Company Name 95's 300's Bid Amount Government (including freight) Estimate Solid Waste Systems 340 $21,778.20 Rehrig Pacific Company 340 $ 19,743.60 Otto Environmental Systems 340 $18,118.60 $20,074.87 IPL Inc 340 $21,513.00 Rotational Molding Inc. 47 $14,976.10 Solid Waste Systems 47 $16,000.12 $15 404.64 Otto Environmental Systems 47 $16,507.81 E - 43 With sales tax accounted for, the total value of this procurement is $35,409.54. Funds were specifically made available in the 2014 solid waste collections budget in the amount of$38,000 for this procurement. It is recommended that Council award the 95 gallons refuse containers contract to Otto Environmental Systems in the amount of$19,382.09, and award the 300 gallons refuse containers contract to Rotational Molding in the amount of$16,027.45 for 300 gallon refuse containers, including all taxes and expenses, and authorize the City Manager to sign these contracts and to make minor modifications, if necessary. E - 44 RE '-'D - ORT NGELES P A W A S H I N G T 0 N, U. S. A. 2 on. IV I.—ANNEW L411WA CITY COUNCIL MEMO DATE: May 20, 2014 To: CITY COUNCIL FROM: Craig Fulton, P.E., Director of Public Works &Utilities SUBJECT: Material Purchase: 95 and 300 Gallon Refuse Containers, Contract SW-14-010 Summary: Bids were received on April 8, 2014 for the purchase of 95 gallon and 300 gallon refuse containers for the Solid Waste Division. Five vendors bid on this material purchase. Otto Environmental Systems was the lowest responsible bidder for the 95 gallon containers. Rotational Molding was the lowest responsible bidder for the 300 gallon containers. Recommendation: Award and authorize the City Manager to sign contracts for the purchase of: 1) 95 gallon refuse containers with Otto Environmental Systems in the amount of$19,640.56, and 2) 300 gallon refuse containers with Rotational Molding in the amount of$16,234.09, including applicable taxes, and to make minor modifications,if necessary. Background/Analysis: Bids were received on April 8, 2014 for both 95 and 300 gallon refuse containers for the Solid Waste Division. This procurement is to replenish the inventory of containers which will be used for replacing broken containers, supplying new homes and businesses, and resourcing special events. Five vendors bid on this material purchase. Otto Environmental Systems was the lowest responsible bidder for the 95 gallon containers. Rotational Molding Inc. was the lowest responsible bidder for the 300 gallon containers. Purchase Contract, SW-14-010 (Prices include sales tax) Company Name 95's 300's Bid Amount Government (including sales tax) Estimate Solid Waste Systems 340 $23,607.57 Rehrig Pacific Company 340 $ 21,402.06 _ $20,074.87 Otto Environmental Systems 340 $19,640.56 — IPL Inc 340 $23,320.09 Rotational Molding Inc. 47 $16,234.09 $15,404.64 Solid Waste Systems 47 $17,344.13 Otto Environmental Systems 47 $17,894.47 The total value of this procurement is $35,874.64. Funds were specifically made available in the 2014 solid waste collections budget in the amount of$38,000 for this procurement. It is recommended that Council award and authorize the City Manager to sign contracts for the purchase of- 1) 95 gallon refuse containers with Otto Environmental Systems in the amount of $19,640.56, and 2) 300 gallon refuse containers with Rotational Molding in the amount of $16,234.09, including applicable taxes, and to make minor modifications, if necessary. 10 RT NGELES e n WASH I N G T O N, U. S. A. v ::::e:::.V1 CITY COUNCIL MEMO DATE: May 20, 2014 To: CITY COUNCIL FROM: Craig Fulton, P. E, Director of Public Works &Utilities SUBJECT: Simple Steps Amendment No. 1 to Project Order-02 Summary: The Simple Steps energy efficiency program has been widely successful. The program is anticipated to have spent its original$65,000 budget by June 2014. Fluid Market has sent Amendment No. 1 to Project Order-02 for an additional$60,000,increasing funding of this program from the original $65,000 to $125,000 for the remainder of 2014. These expenses are reimbursed by BPA; no City funds are used. Recommendation: Authorize the City Manager to sign the Simple Steps Amendment No. 1 to Project Order-02 in the amount of$125,000 and to make any minor modifications as necessary. Background/Analysis: Since 2010 the City has participated in the Simple Steps energy efficient product promotion operated by Fluid Market Strategies (Fluid).Payments to Fluid are used to markdown the price of CFLs,hard-wired light fixtures, LEDs, and low-flow showerheads at local retailers,which ultimately reduce the cost of products purchased by Port Angeles electric utility customers. Local retailers include Thurman Supply. Amounts spent for Simple Steps are reimbursed by Bonneville Power Administration; no City funds are used. The Simple Steps program has been more successful in 2014 than originally anticipated with LED lighting now accounting for between 60%-70% of subsidy dollars. Anticipated energy saving from increased use of LEDs is estimated at 239,716 kWh. This energy savings helps the City use less expensive Tier 1 power saving the City and its citizen's money. Monthly subsidies for the Simple Steps program have risen over the last six months from an average of between $5,000 to $6,000 per month to an average of$9,870 per month, driven primarily by LED sales. This has caused the $65,000 budgeted for 2014 to deplete at a faster rate,with the 2014 budget anticipated to be completely spent by June, leaving six months remaining in the fiscal year. Fluid Market has sent Amendment No. 1 to Project Order-02 to increase funding by $60,000 from the original $65,000 to a new budget total of$125,000. These expenses are reimbursed by BPA and no City monies are used. The City Attorney has reviewed and approved the amendment. This budget increase was reviewed and endorsed at the 13 May 2014 Utility Advisory Committee. Recommendation: City Council authorize the City Manager to sign the Simple Steps Amendment No. 1 to Project Order-01 in the amount of$125,000 and to make any minor modifications as necessary. G:ACNCLPKT\PACKET ITEMS\2014\CC0520\Simp1e Steps increase FY14.doc E - 45 AMENDMENT NO. 1 TO PROJECT ORDER-02 WHEREAS the City of Port Angeles and Fluid entered into Project Order-02,which has an effective date of February 1, 2014 and has a stated funding limit of$65,000.00 for promotional products sold; and, WHEREAS, due to the success of the program and additional energy efficiency measures the City of Port Angeles and Fluid would like to increase the stated funding limit by (0,O(K),to a total of x'12 ,O(K), therefore, IT IS AGREED the funding limit for Project Order-02 is increased from $65,000 to $125,00()for all promotional products sold. IT IS FURTHER AGREED that except as amended above, all of the terms in Project-02 and the Master Service Agreement are confirmed and ratified. IN WITNESS WHEREOF, each of the representatives executing this Contract on behalf of the City of Port Angeles and Fluid warrant he/she is an authorized signatory of the entity for which he/she is signing, and has sufficient corporate authority to execute this Contract. Fluid Market Strategies City of Port Angeles BY: BY: TITLE: TITLE: PRINT NAME: PRINT NAME: DATE: DATE: E - 46 • ORT NGES A' , LE ,-- W AS H I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: MAY 20,2014 To: CITY COUNCIL FROM: KEN DUBUC,FIRE CHIEF SUBJECT: OLYMPIC REGION CLEAN AIR AGENCY-EXTENSION OF MEMORANDUM OF AGREEMENT Summary: In 2012, The City of Port Angeles entered into an agreement with the Olympic Region Clean Air Agency (ORCAA) for the placement of an ambient air quality monitoring station on the roof of the Fire Department. The air monitoring station has been in place since then and ORCAA has been gathering data. This arrangement has worked well, and ORCAA personnel have been exceptionally responsible when it comes to providing notice when access to the equipment is required. The original agreement with ORCAA expired at the end of 2013 and was extended through April of 2014. Attached is a Memorandum of Agreement that extends this agreement again, through December 31, 2014. Recommendation: Authorize the City Manager to sign the attached agreement with the Olympic Region Clean Air Agency for continued operation of an ambient air monitoring station on the roof of the Port Angeles Fire Department. This agreement has been reviewed and approved by the Port Angeles Legal Department. Background/Analysis: In 2012, at the request of the City of Port Angeles, the Olympic Region Clean Air Agency requested the use of space at the Port Angeles Fire Department for the temporary installation of an ambient air monitoring system. The system has been in place and the agreement with ORCAA has been working exceptionally well. ORCAA personnel occasionally contact the Fire Department and request access to the system and this has been no problem whatsoever. ORCAA has reported that they have been pleased with the arrangement as well. The original agreement for use of space at the fire station expired at the end of 2013. The City Council approved an extension of the agreement through April of 2014. ORCAA has submitted another MOA, extending the agreement until December 31, 2014. The Fire Department recommends that the City Council authorizes the City Manager to sign the attached Memorandum of Agreement with the Olympic Region Clean Air Agency for the continued use of space within the Port Angeles Fire Department for an ambient air monitoring station. This agreement has been reviewed by the Port Angeles Legal Department. E - 47 MEMORANDUM OF AGREEMENT BETWEEN THE OLYMPIC REGION CLEAN AIR AGENCY AND CITY OF PORT ANGELES This Memorandum of Agreement(MOA)is made and entered into this 1 st day of May, 2014, between the Olympic Region Clean Air Agency (hereafter"ORCAA") and the City of Port Angeles. This Agreement is adopted to enable operation of an ambient air quality monitoring station at the City of Port Angeles Fire Department(hereafter"PAFD"), located 102 East Fifth Street, Port Angeles, WA. 1.0 Purpose ORCAA seeks to monitor, evaluate and respond to air quality conditions and trends in Port Angeles and Clallam County. ORCAA is therefore seeking support from the City of Port Angeles for continuation of ORCAA's ambient air monitoring program. 2.0 Objectives The objectives of this MOA are to: 2.1 Describe the air monitoring activities at the PAFD performed by ORCAA, 2.2 Outline responsibilities of PAFD and ORCAA and, 2.3 Outline liability 3.0 Agreement and Responsibilities 3.1 ORCAA Responsibilities: 3.1.1 Purchase, install and maintain the instrumentation and monitoring facility at the PAFD; 3.1.2 Record continuous fine particulate observations. Page 1 of 3 E - 48 3.1.3 Plan, document and execute all quality assurance activities for the PAFD site equipment, including regular maintenance procedures. 3.1.4 Post and display air quality monitoring data on websites at ORCAA with near real-time data access. 3.1.5 ORCAA will maintain the following equipment: (1) MetOne Optical Particle Counter and modular assembly, (2) Thermo 48C-TLE CO sampler, (3) LI-840A CO2 sampler, (4) Scanning Mobility Particle Sizer Spectrometer, (5) CO gas cylinder, (6) CO2 gas cylinder, (7) 2-N2 gas cylinders and(8) Chemical ionization mass spectrometer. 3.2 Port Angeles Fire Department Responsibilities: 3.2.1 Port Angeles Fire Department will allow ORCAA representative's reasonable access to PAFD for the installation, maintenance, and routine air monitoring activities. 3.2.2 Port Angeles Fire Department will provide an agreed upon location for placement of air monitoring equipment 3.2.3 Port Angeles Fire Department will provide 1 l OV electrical outlets for equipment. 4.0 Payment 4.1 The City of Port Angeles agreed to host the station and equipment and will be compensated at the end of the contract period, with a one-time payment of $500. 5.0 General Provisions Both parties hereby agree to the following provisions: 5.1 Any damages(s) to the Port Angeles Fire Department facilities or natural resources caused by the direct activities at the site will be the direct responsibility of ORCAA. 5.2 This agreement may be terminated by either party by giving written notice at least thirty (30) days prior to the effective date of termination. Page 2 of 3 E - 49 5.3 This agreement shall not be valid until signed by an authorized representative from both parties. 5.4 This MOA shall be in effect once the signed copy is returned to Port Angeles Fire Department, and will be effective through December 31, 2014. The primary contact for the Port Angeles Fire Department, 102 East Fifth Street, Port Angeles, WA, 98362, shall be Ken Dubuc, Fire Chief, at(360) 417-4653. The primary contacts for ORCAA, 2940 Limited Lane, Suite B, Olympia, WA, 98532, shall be Odelle Hadley, Senior Air Monitoring Specialist, at 360-539-7610, extension 105 and Mark Moore, Network Administrator/Monitoring Specialist, at(360) 539-7610, extension 117. Olympic Region Clean Air Agency Francea McNair, Executive Director Date City of Port Angeles Dan McKeen, City Manager Date Page 3 of 3 E - 50 1"OFF'ORT NGELES -= W A S H I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: NATHAN A.WEST,DIRECTOR COMMUNITY&ECONOMIC DEVELOPMENT SUBJECT: PLANNING COMMISSION APPOINTMENT Summary: Appointment of Planning Commissioner. Recommendation: Staff recommends that,following Council's interview of applicant Mrs. Nancy Powers, Council appoint Mrs. Powers to a full four year term of service on the Planning Commission. Background: Nancy Powers served the City as a Planning Commissioner from March, 2009 until February, 2012 when she resigned her position on the Planning Commission due to family matters. Mrs. Powers is once again willing to serve the City as a volunteer Planning Commissioner. Mrs. Powers has a good depth of experience in land use matters and has shown a willingness to serve the community in this capacity. Staff supports her reappointment to fulfill the term of Doc Reiss, whose term of appointment expired in February, 2014. Mrs. Powers' term would then be until 2016. This appointment will return the Planning Commission to a full seven member status. Mrs. Powers' application is attached for your review. E - 51 1 • P Tt :�L �� il APR 0 2014 . f qRTA W A S H I N G T O N, U. S. A. C " (�f ( / � APPLICATION FOR APPOINTMENT TO BOARD, COMMISSION OR COMMITTEE Board, Commission or Committee to which you are seeking appointment: Applicant Name and General Information Al First I @ MI Last Home Street Address City State Zip Home phone Work phone Cell phone E-mail address Date of Birth (to be completed only by applicants for Public Safety Advisory Board for purposes of criminal history check to ensure compliance with Port Angeles Municipal Code 2.26.020) Certification and Location Information (circle one) Are you employed by the City of Port Angeles? Yes (Noo� Are you a citizen of the United States. �, y � � 'Yes') No Are you a Registered Voter? Yes) No Are you a City resident? Yes No If so,how long K44 -- Do you own/manage a business in the City? Yes (N Do you hold any professional licenses,registrations or certificates in any field? Yes ( No') If so,please list: 1 E - 52 Are you aware of any conflict of interest which might arise by your service on a City Board or Commission? If so,please explain:o Work or Professional Experience - List most recent experience first, or attach a resume Empl+r Title From(Mly) To(M/Y) Employe Titl / From Brief job description' I V J Nt), Employer Title From(M/Y) To(M/Y) Brief job description Education - List most recent experience first VYes No _____G6raduated9'�) Institution/Location Degree earned/Major area of study u Yes )VI No Institution/Location Degree earned/Major area of study Graduaf&-d. Yes No Institution/Location Degree earned/Major area of study Graduated? Charitable, Social and Civic Activities and Memberships - List major activities you have participated in during the last five years Organization/Locati4 Group's purpose/objective #of members Brief description of your participation: Organization/Location Group's purpose/objective #of members Brief description of your participation: 2 E - 53 QmosNmmm Why are you interested in serving on this particular Board orCommission? What in your background or experience do you think would help you in serving on this j3o d?,- What ia your understanding ofthe ocapoupibUkiuo of this particular Board or Commission? Please feel free to add any additional comments you wish to make regarding your application. Applicant Signature Date Submit completed forms to: OFFICE OF THE CITY MANAGER 1[ERD8A PIERCE,DEPUTY CITY CLERK 360-417-4630 ortpiuruo@cityofha.uo City of Port Angeles 321 E. 5m Street 9O Box i|50 Port Angeles, W/\ 98362 In compliance with the Americans with Disabilities Act, i[you need special accommodations because ofuphysical limitation,please contact the City Manager's Office at 417.4500 so appropriate arrangements can be made. 3 E - 54 NGELES ,— W A S H I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 6, 2014 TO: CITY COUNCIL FROM: Craig Fulton, P. E., Director of Public Works &Utilities SUBJECT: Interlocal Agreement with Olympic Memorial Hospital District Summary: Olympic Memorial Hospital District (OMHD)no longer wishes to own and operate their medium voltage distribution equipment. An interlocal agreement has been negotiated with OMHD for the City to assume ownership and take over maintenance. Recommendation: Approve and authorize the City Manager to sign an Interlocal Agreement with Olympic Memorial Hospital District to transfer ownership of the District's medium voltage electrical system to the City, and to make minor modifications to the Agreement,if necessary. Background/Analysis: Over several decades of expansions and additions, ownership of the medium voltage distribution system at OMHD has been a largely undocumented and inconsistent mixture of some City installed and owned equipment and some owned by OMHD. In recent years, OMHD has been in the role of the owner of these facilities and has been billed at the lower billing rate that reflects ownership and maintenance responsibility by OMHD. Lacking the necessary expertise to operate 15kV equipment, OMHD has requested that the City to assume ownership and maintenance responsibility. An agreement has been negotiated to formally transfer ownership to the City, and assign OMHD to a different and more appropriate billing rate. In exchange for the value of the equipment being transferred, the City has agreed to install a second power source into the site to enhance service redundancy and reliability. Capital Project CL08-2007 budgeted $100,000 in 2014 to accomplish this. OMHD will contribute up to $100,000 to this effort, which includes replacing and disposing of two existing PCB contaminated transformers. Per City Council request on 6 May, the agreement was discussed and reviewed at the 13 May UAC for informational purposes. Several items were discussed: - The transformers to be replaced provide power to OMC's electric boilers. - There will not be any additional workload on the Light Operations crews, as this additional distribution will be upgraded, and is insignificant in scope in comparison to the totality of the electric utility distribution system. G:ACNCLPKT\PACKET ITEMS\2014\CC0520\01ympic Medical Hospital District Interlocal Agreement.doc E - 55 - OMC will be receiving an adjusted electric rate, but in turn they will be reimbursing the City for all maintenance and repair on this section of electrical distribution. - OMC does not have the requisite expertise to properly maintain this high voltage distribution, while the City Light Ops crews and City engineering does. This City expertise will allow more reliable power to OMC boilers. - There will be no impacts on any future OMC expansion plans. It is recommended that Council approve and authorize the City Manager to sign an Interlocal Agreement with Olympic Memorial Hospital District to transfer ownership of the District's medium voltage electrical system to the City, and to make minor modifications to the Agreement, if necessary. Attachment: Interlocal Agreement E - 56 INTERLOCAL AGREEMENT BETWEEN THE CITY OF PORT ANGELES AND CLALLAM COUNTY PUBLIC HOSPITAL DISTRICT NO. 2, d/b/a Olympic Medical Center REGARDING OWNERSHIP AND MAINTENANCE OF DISTRIBUTION FACILITIES THIS INTERLOCAL AGREEMENT ("Agreement") is entered into between the City of Port Angeles, a non-charter code city of the State of Washington, hereinafter referred to as "the City," and Clallam County Public Hospital District No.2 d/b/a Olympic Medical Center hereinafter referred to as "OMC," which are sometimes collectively referred to as the "Parties." Recitals A. Pursuant to Title 35A RCW, the City owns and operates a retail electric distribution system ("System") located in Port Angeles, Washington. B. Clallam County Public Hospital District No. 2, owns and operates Olympic Memorial Hospital located at 939 Caroline Street, in the City of Port Angeles. Olympic Memorial Hospital is supplied with electric service by multiple transformers through a single service point metered at 12,470 volts from the City distribution system. C. Neither the City nor OMC records are completely clear regarding ownership of much of the 12 kV cable and transformers in the distribution system on the load side of the primary meter. D. OMC does not have adequately trained staff to own, operate, or maintain 12 kV distribution equipment, also referred to as "medium voltage" equipment. E. OMC has long been billed at a rate as though OMC owned the medium voltage distribution equipment, and OMC wishes to maintain that current billing rate classification in the future. F. OMC is willing to pay for all expenses incurred by the City, as further defined herein, for all work and services performed on the medium voltage equipment as tracked by the City. G. The Parties desire to enter into this Agreement pursuant to RCW 39.34, the Interlocal Cooperation Act, to formally define ownership and assist OMC with continued reliable electrical service for the Hospital. NOW, THEREFORE, in light of the foregoing recitals, which are incorporated herein as part of the agreement of the Parties, and the mutual terms, conditions, and covenants set forth below, the Parties agree as follows: 1. OMC Obligations Page 1 of 5 E - 57 A. OMC shall fully reimburse the City for all costs and expenses to remove and dispose of two existing 2,000 kVA pad mounted transformers and to acquire and install at the Hospital two new 1,500 kVA transformers that comply with City material specification MDUT-301. The costs and expenses include the following elements: • all costs and expenses to remove and dispose of two existing 2,000 kVA pad-mounted transformers, and • all costs and expenses to acquire and install at the Hospital two new 1,500 kVA transformers that comply with City material specification MDUT-301, and • all costs and expenses to install a second primary meter and source of power underground from the east property line on Chambers Street, and • all underground construction costs. The parties anticipate and believe that the total costs and expenses will not exceed One Hundred Thousand Dollars ($100,000). In the event it appears that, for any reason, the costs and expenses will exceed One Hundred Thousand Dollars ($100,000), the City shall cease work and the parties will negotiate in good faith the reimbursement for the costs in excess of One Hundred Thousand Dollars ($100,000). B. City agrees to plan and implement this operation with as little interruption as possible to the provision of electrical power to the Hospital. C. OMC has determined that two 1500 kVA transformers are adequate for the loads currently supplied by the two 2,000 kVA PCB transformers. D. OMC shall fully reimburse the City (within thirty (30) days of receipt of a detailed invoice), for all reasonable costs and expenses for future operation, maintenance, repair, or replacement of the medium voltage equipment. OMC and the City will meet once a year prior to annual expense and capital budgets to go over planned maintenance and any work that is foreseen and will place a budget cost to this. 2. City Obligations A. The City shall remove and dispose of two existing 2,000 kVA pad mounted transformers and simultaneously shall then install at OMC two new 1,500 Page 2 of 5 E - 58 kVA transformers. OMC has determined two 1,500 kVA transformers are adequate for the loads currently supplied by the two 2,000 kVA PCB transformers. The new transformers shall comply with City material specification MDUT-301 and any other applicable code requirements. B. Upon the completion of the "City and OMC obligations" itemized above, the City will assume permanent ownership and control of all medium voltage equipment from the primary meter to and including the pad-mounted transformers. OMC ownership will begin with the cables on the transformer secondary bushings. C. City will transfer OMC to a primary-metered billing rate that provides for City ownership of the distribution facilities up to and including the pad-mounted transformers, as defined in the Port Angeles Municipal Code (PAMC) Section 13.12.065, or subsequent revisions, currently designated as schedule PS-04. The PS-04 billing rate and subsequent revisions are anticipated and intended in good faith to be consistent with the billing rate charged to customers who own their medium voltage equipment, currently designated as schedule PS-03. The City shall use best efforts to maintain parity between the PS-03 and PS-04 schedules and any variation between the two will only be for good cause. D. City will perform all future operation, maintenance, repair, or replacement of the medium voltage equipment and bill OMC for the costs incurred, including all labor, material, equipment charges, and sales tax at the rates established in PAMC 3.70.105 — Electric Utility Service Fees, or subsequent revisions. E City shall give notice to the OMC Plant Operations Manager at least 1 day prior to coming on site when possible. This to make sure that OMC has clear pathways for the City crews to get where they need to be and none of the man holes are blocked. 3. No Warranties or Guarantees Electric service to the Hospital will be subject to all provisions and conditions of service as defined in Title 13 of the PAMC. The City makes no warranties or guarantees that crews and/or equipment will be available to complete work requested by OMC. The City makes no warranties or guarantees as to the timeliness of the City's ability to respond to a request, the level of service in response to a request, or the ability to restore service within any particular time frame. It is agreed that while there are no warranties, City and OMC will work together toward the goal that OMC will have the most reliable medium voltage system as reasonably possible. City and OMC also understand and agree that keeping and maintaining power to OMC is a number one priority for both City and OMC, to which all reasonable efforts will be devoted, as established by past practice. OMC specifically agrees to this provision and the waiver of all warranties and guarantees set forth herein. Page 3 of 5 E - 59 4. Term and Effective Date of Agreement This Agreement shall be effective on the date upon which it has been signed by both Parties, and will continue until cancelled or modified by mutual agreement in a written amendment. 5. Attorneys' Fees and Costs In the event it is necessary for either Party to utilize the service of an attorney to enforce any of the terms of this Agreement, such enforcing Party shall be entitled to compensation for reasonable attorneys' fees and costs. In the event of litigation regarding any of the terms of this Agreement, the substantially prevailing Party shall be entitled, in addition to other relief, to such reasonable attorneys' fees and costs as determined by the court. 6. Remedies In the event of default of any provision of this Agreement, the non-defaulting Party shall have all rights and remedies existing at law, including the right to recover monies paid and wrongfully expended, and to seek other damages allowed by law. 7. Notices Any notices shall be effective if personally served upon the other Party, or if mailed by registered or certified mail, return receipt requested, to the following addresses, or such other address as a Party may designate in,writing, and shall be deemed given on the date of mailing: City of Port Angeles c/o City Manager 321 E. Fifth St. Port Angeles, WA 98362 Olympic Medical Center c/o Administrator 939 Caroline St. Port Angeles, WA 98362 8. Entire Agreement This Agreement contains the entire agreement between the Parties with respect to medium voltage equipment ownership, and supersedes all prior Agreements or understandings between the Parties with respect thereto. Page 4 of 5 E - 60 9. Venue Venue for any action brought on the arbitration award, including enforcement of such award, shall be in the Superior Court of Clallam County, and such action shall be governed by application of the laws of the state of Washington. The prevailing party in any such action on the arbitration award shall be entitled to its reasonable attorney fees and costs associated with such action. IN WITNESS WHEREOF, the Parties have executed this Agreement the 8 day of 2014. Clallam County Public Hospital District No. 2, d/b/a Olympic Medical Center CITY OF PORT ANGELES Eric Lewis,CEO/Administrator City Manager Date Signed: ° Date Signed: Approved as to Form: City Attorney Attest: City Clerk Page 5 of 5 E - 61 r! A NiG.E; L E, 11, f 'Dp WASHINGTON U . S . A . CITY COUNCIL MEMO Date: 20 May 2014 To: City Council From: Craig Fulton, P.E., Director of Public Works and Utilities Subject: Solid Waste Utility Rate Ordinance Amendment Summary: The FCS Group recently completed the comprehensive rate studies for the Solid Waste Collection and Transfer Station utilities. The studies were presented to the Utility Advisory Committee, including the recommended retail rate adjustments. It will be necessary to adjust retail rates at this time to maintain the funds in a financially prudent position. Further, the rate schedules are a requirement for the revenue bonds that will be used to finance the landfill bluff stabilization project. Recommendation: Proceed with a public hearing on the proposed rate ordinance amendments for the Solid Waste Collection and Transfer Station Utilities. Continue the public hearing to June 3, 2014 and adopt the proposed rate ordinance amendments for the Solid Waste Collection and Transfer Station utilities. Background/Analysis: The City has contracted with FCS Group to complete comprehensive cost of service studies for all of its utilities. The studies for the Solid Waste Collections and Transfer Station utilities have recently been completed. Council will also be considering first reading of the ordinances for the two bonds that will provide the funding for the Landfill Bluff Stabilization project. Concurrently, the City needs to adopt solid waste utility rates for both Collections and Transfer Station for the years 2015, 2016, 2017, 2018, and 2019. Rating agencies, bond insurers and prospective bond buyers need that assurance prior to committing funding for the revenue bond. Based on the final bond documents that split the issuance into Limited Tax General Obligation and Utility Revenue bonds, the overall projected annual rate increase for the Transfer Station is 5.3% through 2019 period. As a result of this proposed increase, the Solid Waste Collection utility is also affected through 2018 with an annual increase of 5.6%, with a drop in 2019 to 4.0%. The cumulative proposed Transfer Station rates are one-half of the increase that was previously estimated in 2013. Except for the 2019 reduction, the Solid Waste Collections proposed rates remain the same as previously estimated. On May 13, 2014, the Utility Advisory Committee unanimously recommended, with one abstention and one excused absence, that City Council conduct two public hearings and adopt the rate ordinance amendments as proposed. Council is therefore requested to proceed with public hearing to allow public input on the rate ordinance amendments for the Solid Waste Collection and Transfer Station Utilities. The public hearing will be continued to June 3, 2014 at which time the public hearing will be closed and Council will be requested to adopt the proposed rate ordinance amendments. If ratified, the rate adjustments would become effective January 1, 2015. G:ACNCLPKPPACKET ITEMS\2014\CC0520\Solid Waste Utility Rate Ordinance Amendment Memo.docx G - 1 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, relating to utilities rates, making changes to Title 13, Chapters 13.54 and 13.57 of the Port Angeles Municipal Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN AS FOLLOWS: Section 1. Ordinance No 3243 as amended, and Title 13 of the Port Angeles Municipal Code Chapter 13.54 is amended to read as follows: 13.54.050 Schedule R-01—Residential weekly service. A. The rate shall be $32-1-7 per month for one collection of a 90-gallon refuse container per week- and-Tthe rate per month for each additional refuse container shall be $32.17. the rates shown in the following table: 2015 2016 2017 Rate Surcharge Total Rate I Surcharge I Total Rate Surcharge Total 33.69 0.72 34.40 35.29 1.21 36.50 37.02 1.68 38.70 2018 2019 and beyond Rate Surcharge Total Rate Surcharge Total 38.84 $2.18 $41.01 $39.70 $2.68 42.38 Upon request, a refuse container collection in addition to the weekly collection may be made and a utility service fee shall be charged per occurrence in accordance with PAMC 3.70.010.B.3. If a person does not request every-other-week service in accordance with PAMC 13.54.060.A. the rate specified within this section shall apply. B. Upon request a 96-gallon recycling container may be provided and shall be collected every other week. The recycling container and collection of the recycling container shall be provided at no additional charge. C. A utility service fee in accordance with PAMC 3.70.010.B.4. shall be charged per container each time the same person at the same service location (1) changes from Schedule R-01 - Residential Weekly Service to Schedule R-02 - Residential Every-Other-Week Service, or (2) requests a recycling container where the recycling service has been voluntarily discontinued or terminated in accordance with 13.54.150.H. -1- G - 2 D. A utility service fee shall not be charged to resume recycling service if the same person at the same service location voluntarily terminates water,wastewater, garbage collection, and recycling services providing that electric service is maintained. 13.54.060 Schedule R-02—Residential every other week service. A. Upon request the rate shat be $Ill 2[ per month for one collection of a 90-gallon refuse containers and the rate per month for each additional refuse container shall be $20.35. the rates shown in the following table: 2015 2016 2017 Rate Surcharge Total Rate I Surcharge Total Rate Surcharge Total 21.00 0.46 21.46 21.99 $R.78 922.78 23.07 1.09 24.16 2018 2019 and beyond Rate Surcharge Total Rate I Surcharge Total 24.20 1.41 25.61 24.74 1.73 26.48 B. A refuse container set out in accordance with the scheduled date and time for weekly service shall not be collected. Upon request, a refuse container collection in addition to the every other week collection may be made and a utility service fee shall be charged per occurrence in accordance with PANIC 3.70.010.B.3. C. Upon request a 96-gallon recycling container may be provided and shall be collected every other week. The recycling container and collection of the recycling container shall be provided at no additional charge. D. A utility service fee in accordance with PANIC 3.70.010.B.4 shall be charged per container each time the same person at the same service location (1) changes from Schedule R-02 - Residential Every Other Week Service to Schedule R-01- Residential Weekly Service, or (2) requests a recycling container where the recycling service has been voluntarily discontinued or terminated in accordance with 13.54.150.1-1; provided, however, this paragraph shall not apply to any changes or requests made during the two weeks beginning six weeks prior to the effective date of any amendments to the rates under Schedule R-01 or Schedule R-02. E. A utility service fee shall not be charged to resume recycling service if the same person at the same service location voluntarily terminates water,wastewater, garbage collection, and recycling services providing that electric service is maintained. F. Under no circumstances shall the rate for any single dwelling or multiple dwelling be less than the rate specified in this Section, except as allowed by PANIC 13.20 -2- G - 3 13.54.070 Schedule R-03—Residential yard waste service. A. Upon request the rate shall be $8.40 per month per 96-gallon yard waste container for one collection of yard waste every other week during the months of March through November and once per month during the months of December through February shall be the rates shown in the following table. The rate per month for each additional yard waste container shall be$8.40. as shown in the following table. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate 8.50 8.67 8.85 9.04 9.24 B. A utility service fee in accordance with PAMC 3.70.010.B.4. shall be charged each time the same customer at the same service location requests the yard waste service where the yard waste service has been terminated. A utility service fee in accordance with PAMC 3.70.010.B.4. shall be charged for each additional yard waste container if the additional container is discontinued by the same customer at the same service location within a period of 120 days. C. A utility service fee shall not be charged to resume yard waste service if the same person at the same service location voluntarily terminates water,wastewater, garbage collection, and yard waste services providing that electric service is maintained. 13.54.090 Schedule C-01—Commercial 90-gallon service. A. The rate shall be $26.89 per month for one collection of a 90-gallon refuse container per week and semi-weekly collection of a cardboard recycling container shall be the rate shown in the following table. The rate per month for each additional refuse container and for each additional weekly collection of a refuse container shall be$ . the rate shown in the following table. The rate shall be reduced by 4.6 percent for the federal government, its agencies and instrumentalities. 2015 2016 2017 Rate Surcharge Total Rate I Surcharge Total Rate Surcharge Total 29.15 SQ.63 29.77 31.84 1.10 32.94 34.84 1.59 36.43 2018 2019 and beyond Rate Surcharge Total Rate Surcharge Total 38.14 $2.14 $40.28 $41.74 $2.80 44.54 -3- G - 4 B. Under no circumstances shall the rate for any commercial building be less than the rate specified in this section. 13.54.100 Schedule C-02—Commercial 300-gallon service. A. The rate shall 4=54 per month for one collection of a 300-gallon refuse container per week and semi-weekly collection of a cardboard recycling container shall be the rates shown in the following table. The rate per month for each additional refuse container and for each additional weekly collection of a refuse container shall be $81.5 1. the rates shown in the following table. The rate shall be reduced by 4.6 percent for the federal government, its agencies and instrumentalities. 2015 2016 2017 Rate Surcharge Total Rate Surcharge Total Rate Surcharge Total 83.22 1.69 84.91 85.62 2.81 88.43 88.24 3.8.5 92.09 2018 2019 and beyond Rate Surcharge Total Rate I Surchar a Total 90.99 11,91 95.90 93.78 6.08 99.87 B. Where approved by the Director, a 300-gallon refuse container may be shared by up to five persons. The Director shall determine the rate charged to each person that shares the use of a 300-gallon refuse container based on each person's waste volume and/or weight and Schedule C-02-Commercial 300-Gallon Service. Under no circumstances shall the rate for any person that shares a 300-gallon refuse container be less than Schedule C-01 - Commercial 90 - Gallon Service. The rate shall be reduced by 4.6 percent for the federal government, its agencies and instrumentalities. C. Where a restricted use container is required by the Director, the Director shall determine the rate charged to each person that is assigned a restricted refuse container based on each commercial dwelling's waste volume and/or weight and Schedule C-02-Commercial 300-Gallon Service. Under no circumstances shall the rate for any person that is assigned a restricted refuse container be less than Schedule C-01 -Commercial 90-Gallon Service. The rate shall be reduced by 4.6 percent for the federal government, its agencies and instrumentalities. -4- G - 5 13.54.110 Schedule C-03—Commercial recycling service. When the commercial recycling service is requested in addition to semi-weekly collection of cardboard, the rate shall be e'er the rate shown in the following table per month for one collection of a recycling container per week for each location within the City limits of Port Angeles. The rate per month for each additional recycling container and each additional weekly collection of a recycling container shall be e'er the rate shown in the following table. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate 13.80 13.80 13.80 13.80 13.80 Section 2. Ordinance No. 3243 as amended, and Title 13, Chapter 13.57 is amended to read as follows: 13.57.020 Rates. The following rates include all applicable taxes except as noted and shall be charged at the solid waste processing facility: A. All collection entities shall be charged and pay the following rates at the transfer station: 1. Collection entities that provide the City an exemption certificate in accordance with WAC 458-20-250(7) and City of Port Angeles accounts shall be charged 3 the rate shown in the following table per ton for municipal solid waste. This rate does not include the Washington State solid waste collection tax. 2015 2016 2017 Rate Surcharge Total Rate I Surcharge Total Rate Surcharge Total 139.13 1%=18 51 9141.91 13.91 155.82 9144.75 19.51 164.26 2018 2019 and beyond Rate Surcharge Total Rate Surcharge Total 147.65 25.51 173.16 150.60 31.93 182.53 2. Collection entities that provide the City an exemption certificate in accordance with WAC 458-20-250(7) and City of Port Angeles accounts shall be charged $29.09 the rate shown in the following table per ton for clean yard waste. This rate -5- G - 6 does not include the Washington State solid waste collection tax. The transfer station attendant shall determine whether each load qualifies as clean yard waste eligible for this rate. Yard waste that is not eligible for this rate shall be deemed municipal solid waste for determining rates. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate 29.09 29.67 30.27 30.87 31.49 3. $74.06 The rate shown in the following table per ton for wastewater treatment plant biosolids. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate 74.06 75.54 77.05 78.59 1 SaO.16 4. The City shall pay the collection entity charges for municipal solid waste received at the transfer station from the contractor for the Blue Mountain drop box operation under the service agreement. The City shall pay the collection entity charges for yard waste received at the transfer station from the contractor for curbside collection of yard waste under the service agreement. 5. Collection entities that do not provide the City an exemption certificate in accordance with WAC 458-20-250(7)shall be deemed self-hauler for purposes of determining rates. B. All self-haulers shall be charged and shall pay the following rates at the transfer station (except as set forth herein): 1. e'er The rate shown in the following table per ton for municipal solid waste with a $10.00 minimum fee. 2015 2016 2017 Rate Surcharee Total Rate Surcharee Total Rate Surcharee Total 170.11 9.94 180.05 9173.51 16.89 190.40 176.98 23.70 200.68 2018 2019 and beyond Rate Surcharee Total Rate Surcharee Total 180.52 30.99 $211.51 184.13 38.78 222.91 -6- G - 7 2. $4 7.20 The rate shown in the following table per ton for clean yard waste, with a $5.00 minimum fee. The transfer station attendant shall determine whether each load qualifies as clean yard waste eligible for this rate. Yard waste that is not eligible for this rate shall be deemed municipal solid waste for determining rates. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate 47.20 48.14 49.11 50.09 51.09 3. In addition to the fees established by subsections 1. and 2. of this section, a self-hauler that delivers an unsecured load to the transfer station shall be charged a $10.00 fee. 4. There will be no fee charged for recyclable materials deposited into the recycling drop-off facility. There will be no fee charged for acceptable household hazardous waste received at the transfer station. 5. There will be no fee charged for acceptable moderate-risk waste received at the moderate-risk waste facility from residents covered under the interlocal agreement. Commercially exempt small quantity generators shall not deposit moderate-risk waste at the moderate-risk waste facility. 6. Self-hauler rates shall be reduced by 4.6 percent for the federal government, its agencies and instrumentalities. 7. Rates for acceptable special waste shall be charged the rate shown in the following table. 2019 and 2015 2016 2017 2018 beyond Rate Rate Rate Rate Rate Self Haul--Tires S170.11 S173.51 S176.98 S180.52 184.13 Self Haul--Asbestos S447.24 S456.18 S465.31 S474.61 S484.11 Self Haul--Metal&White Goods $72.29 $73.74 $75.21 $76.71 $1 8.25 Environmental Fee $23.80 $24.28 $24.77 $25.27 $Z 5.78 Self Haul--Contaminated Soils 237.76 242.52 S247A7 252.31 257.36 -7- G - 8 ............................ ..................................................... Asbestos CA A'7.)A W . . I - I obile a-Rd tfa&4 pef+Off pef:"Off Q')2'7 R-11111 R Wd OF dFedge-S� . 7A pef:40ff The environmental fee per unit shall be in addition to the rate per ton for metals and white goods. 8. In lieu of requiring multiple scale house transactions for loads with mixed municipal solid waste, the Director may establish weight reductions for recyclable materials, metals, acceptable household hazardous waste, and acceptable moderate-risk waste. Under no circumstances shall a weight reduction result in a reduction of the minimum fee. The weight reductions approved by the Director shall be issued at the scale house. C. The self-hauler rate 13.57.020.B.1. may be waived or reduced by up to 50 percent subject to the following requirements: 1. The person requesting a waiver or reduction submits a written application to the Director at least 30 days before disposal of refuse at the transfer station. The Director shall accept or deny the application before refuse is disposed at the transfer station. 2. A waiver may be available for disposal of refuse which is collected as part of a beautification or cleanup program, such as the annual transfer station benefit dump day, Clallam County chain gang, and Washington State Department of Transportation Adopt a Highway program, which must dispose of litter. 3. A reduction may be available for disposal of refuse, which is collected as part of the annual City of Sequim benefit dump day. 4. A reduction may be available to charitable, nonprofit organizations, such as the Salvation Army, St. Vincent DePaul, and Serenity House, the primary purpose of which is provide necessary support for the poor or infirm and which must dispose of unusable donated items. 5. Pursuant to Chapter 35.83 RCW, a reduction may be applied to the Housing Authority of Clallam County for self-haul of materials left by tenants who vacate housing authority premises and for disposal of demolition debris. 6. All waivers or reductions approved by the Director shall be valid for 30 days and shall be limited to projects that further the public health, safety, or welfare, -8- G - 9 enhances the environment, or is otherwise in the public interest for parties of the interlocal agreement. 7. In order for the waiver or reduction to be valid, applications approved by the Director shall be presented to the scale house attendant at the time of disposal. D. All self-haulers shall be charged and shall pay the following rates per ton at the Blue Mountain drop-box: 1. $237.40 The rate shown in the following table per ton for municipal solid waste with a $5.00 minimum charge. 2015 2016 2017 Rate Surcharge Total Rate I Surcharge I Total Rate Surcharge Total 237.40 13.75 251.15 242.15 23.37 265.52 246.99 32.79 279.78 2018 2019 and beyond Rate Surcharge Total Rate I Surcharge Total 251.93 42.87 $294.80 S25AA7 1 53.65 310.62 2. Recyclable materials deposited into the recycling drop-off facility will not be charged a fee. Acceptable household hazardous waste will not be charged a fee. 3. The self-hauler rate shall be reduced by 4.6 percent for the federal government,its agencies and instrumentalities. Section 3 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 4 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. -9- G - 10 Section 5 -Effective Date. This Ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect on January 1, 2015 after passage and publication of an approved summary thereof consisting of the title. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of June, 2014. Dan Di Guilio, Mayor ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney PUBLISHED: 2014 By Summary -10- G - 11 Transfer Station and Solid Waste Collection Utility Rate Ordinance Amendments for 2015 - 2019 Port Angeles Utility Advisory Committee May 13 , 2014 QF PORTgqvCE`�� Philip D. Lusk Deputy Director of Power Et Telecommunications Systems 360.417.4703 _ pluskCcityof pa. us G -12 May 20di Ci��� ty Cou��,ici��J Meet`�i�h���Ig Council will be requested to conduct the first reading of ordinances for two bonds • Bonds are the remaining source of funds for the landfill bluff stabilization project Collections and Transfer Station 2015 - 2019 rate schedule needed • Bond rating agencies, insurers and prospective buyers need that assurance prior to committing funding for the revenue bond • Adopted rates may be modified by City Council as needed at any future time G - 13 Rate ts Bonds split into Limited Tax General Obligation ( LTGO ) and revenue bonds • Transfer Station • Proposed annual rate increase is 5.3% through 2019 period — Transfer Station proposed rates are one-half of previous estimate • Solid Waste Collections • Proposed annual increase of 5.6% through 2018, dropping to 4.0% in 2019 — Same as previously estimated, except for the 2019 reduction G - 14 Questions from Aprit Work Session Q: Do the study results reflect flow control? A: Yes. Clallam County's failure to enact flow control increased the City's cost of borrowing. Q: Did the study account for revenue received for metals and white goods? A: Yes. The City currently get $150/ton for selling the metals and white goods. Q: Why is there a subsidy for asbestos, tires, and contaminated soils? A: Subsidy reflects previous Council policies to encourage that these items are disposed at the transfer station rather than being illegally dumped. G -15 uuuuuuu�uumm uuu 0 uu G - 16 III $8,000,000 $7,000,000 $6,000,000 ilyy7yT`��Uliyyy)y5yPy7yTJldL5yPy7yT)x�7Uili p li,i i i i n,.y»»»»»y..y ,i $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 2015 2016 mm Cash Operating Expenses lama Existing Debt Service mm New Debt Service � Post Closure Reserve Transfers Additions to Meet Coverage —Total Existing Revenue Total Revenue After Increase 2013 rate pbn adjusted V' Interest capitalized in 2015 Revenue bond coverage target of 1 .75 Past closure fund transfers require �� O GROUP 1U Meeting car exceeding fund balance targets � - 17 Transfer Station Total Revenues by Category and Percent Biosolids 1.68% Yard Waste SH-MSW 1.82% 31.87% -Asbestos 0.04% SH-Tires 0.24% -Cont.Soils 0.00% S and Waste 2.39% Other j 1.04% hite Goods .76% G - 18 uu mi u� "'It uu u� uuuuumuuuu °� uu l Facility operations and contractual costs considered through 2019 Update consistent with 2013 findings • Promotes every other week residential pick-up based on previous Council direction • Commercial costs are being phased in to full COSA by 2019 Annual rate increase of 5. 3% proposed through 2019 • Half of the previously estimated rate increase — Largely due to fine-tuning of bond instrument — Rates include surcharge for the bluff stabilization project G - 19 Tax-Exempt MSW Projected Disposal Cost per Ton Including Landfill Bluff Stabilization Project Surcharge $250.00 $200.00 $150.00 0 $100.00 $50.00 $0.00 2014 2015 2016 2017 2018 2019 111111111112013 COSA $139.13 $159.73 $169.49 $179.83 $190.80 $202.44 111111111112014 COSA $139.13 $147.31 $155.82 $164.26 $173.16 $182.53 Self-Haul MSW Projected Disposal Cost per Ton Including Landfill Bluff Stabilization Project Surcharge $250.00 $200.00 $150.00 0 $100.00 $50.00 $0.00 2014 2015 2016 2017 2018 2019 IIIIIIIII 2013 COSA $139.13 $159.73 $169.49 $179.83 $190.80 $202.44 111111112014 COSA $139.13 $147.31 $155.82 $164.26 $173.16 $182.53 IIII IIII J� umm i''i l O Ra"Ites IIIIII �� 2014 1 2015 1 2016 1 2017 1 2018 1 2019 m. Rate I Rate Isurchargel Rate Isurchargel Rate Isurchargel Rate Isurchargel Rate Isurcharge Tax Exempt Transfer Station MSW $139.13 $139.13 $8.18 $141.91 $13.91 $144.75 $19.51 $147.65 $25.51 $150.60 $31.93 Yard Waste $29.09 $29.09 $29.67 $30.27 $30.87 $31.49 Biosolids $74.06 $74.06 $75.54 $77.05 $78.59 $80.16 Self Haul--MSW Monthly Rate $157.51 $157.51 $160.66 $15.64 $163.87 $21.94 $167.15 $28.69 $170.49 $35.91 City Utility Tax 12.60 12.60 12.85 1.25 13.11 1.76 13.37 2.30 13.64 2.87 Total $170.11 $170.11 1$173.51 $16.89 $176.98 $23.70 $180.52 $30.99 $184.13 $38.78 Self Haul--Tires Monthly Rate r$,57.51 $157.51 $160.66 $163.87 $167.15 $170.49 City Utility Tax 12.60 12.60 12.85 13.11 13.37 13.64 Total 70.11 $170.11 $173.51 $176.98 $180.52 $184.13 Self Haul--Asbestos Monthly Rate $414.11 $414.11 $422.39 $430.84 $439.46 $448.25 City Utility Tax 33.13 33.13 33.79 34.47 35.16 35.86 Total $447.24 $447.24 $456.18 $465.31 $474.61 $484.11 Self Haul--Contaminated Soils Monthly Rate $220.15 $220.15 $224.55 $229.04 $233.62 $238.30 City Utility Tax 17.61 17.61 17.96 18.32 18.69 19.06 Total $237.76 $237.76 1$242.52 $247.37 $252.31 $257.36 Self Haul--Yard Waste Monthly Rate $43.70 $43.70 $44.58 $45.47 $46.38 $47.31 City Utility Tax 3.50 3.50 3.57 3.64 3.71 3.78 Total $47.20 $47.20 $48.14 $49.11 $50.09 $51.09 Self Haul--Metal&White Goods Monthly Rate $66.94 $66.94 $68.27 $69.64 $71.03 $72.45 City Utility Tax 5.35 5.35 5.46 5.57 5.68 5.80 Total $72.29 $72.29 $73.74 $75.21 $76.71 $78.25 Blue Mountain Monthly Rate $219.81 $219.81 $12.73 $224.21 $21.64 $228.70 $30.36 $233.27 $39.69 $237.93 $49.68 City Utility Tax 17.59 17.59 1.02 17.94 1.73 18.30 2.43 18.66 3.18 1g.03 3.97 Total $237.40 $237.40 $13.75 $242.15 $23.37 $246.99 $32.79 $251.93 $42.87 $25Y95 $53.65 Solid Waste Collections G -23 I"IMM:z=I M:�� $4,500,000 $4,000,000 $3,500,000 � .... .... $3,000,000 wwwww��rwaraul riwwtawww��rwawww�r¢wwtawww��rwar� �«rrrrrrrrrrrrrrrrrmrtrtrtrtrtrt�rtrrrrrrrrrrrrrrrrrrrrrrmrtrtrtrtrtrt�rtrrrrrrrrrrrrrrrrrrrrr' $2,500,000 i'W'v,W1y7wJw�w�wJw�wlwlyW1wJw�w�wJw�w�wJw�w�wJw�w�w1yW1w1y1'�wJw�w�wJw�w�wJ $2,000,000 $1,500,000 $1,000,000 $500,0 00 2015 2016 Transfer Station Imm Contractual mom Administrative MMM Cash Operating Expenses -Total Existing Revenue Total Revenue After Increase SHght increase to 2013 rate shady V' Increase in operating Costs (equipment replacement/trucks) V' Reduction of 2014 beginning balances Compared to forecast FC Continue to use fund balla ices to moderato rote impacts G -24 sO < �f, 1UJfi, Solid Waste Collections Findings • Slight increase in costs compared to 2013 • Rates promote every other week residential pick-up based on previous Council direction • Commercial rates are being phased in to full COSA by 2019 • Continued use of fund balances to buy-down rate impacts • Annual rate increase of 5 . 6% proposed through 2018 , dropping to 4. 0% in 2019 • Same as previously estimated, except for the 2019 reduction • Includes surcharge for the bluff stabilization pgoipct Collect`iu��i u 5 ,,, Rates 2014 1 2015 1 2016 1 2017 1 2018 1 2019 m.m. m.w m. Rate I Rate Isurchargel Rate Isurchargel Rate Isurchargel Rate Isurchargel Rate Isurc harge Residential--Weekly Monthly Rate $29.25 $30.63 $0.65 $32.08 $1.10 $33.65 $1.53 $35.31 $1.98 $36.09 $2.43 City Utility Tax $2.92 $3.06 $0.07 $3.21 $0.11 $3.37 $0.15 $3.53 $0.20 $3.61 $0.24 Total $32.17 $33.69 $0.721 $35.29 $1.21 $37.021 $1.68 $38.841 $2.18 $39.70 $2.68 Residential--EOW(Every Other Week) Monthly Rate $18.50 $19.09 $0.42 $20.00 $0.71 $20.97 $0.99 $22.00 $1.28 $22.49 $1.57 City Utility Tax $1.85 $1.91 $0.04 $2.00 $0.07 $2.101 $0.10 $2.20 $0.13 $2.25 $0.16 Total $20.35 $21.00 $0.461 $21.99 $0.78 $23.071 $1.09 $24.201 $1.41 $24.74 $1.73 Residential--Yard Waste Monthly Rate $7.64 $7.73 $7.88 $8.05 $8.22 $8.40 City Utility Tax $0.76 $0.77 $0.79 $0.801 $0.821 $0.84 Total $8.40 $8.50 1 $8.67 $8.851 $9.041 $9.24 Commercial--90 Gallon Monthly Rate $24.45 $26.50 $0.57 $28.95 $1.00 $31.67 $1.44 $34.68 $1.94 $37.94 $2.55 City Utility Tax $2.44 $2.65 $0.06 $2.89 $0.10 $3.171 $0.14 $3.47 $0.19 $3.79 $0.25 Total $26.89 $29.15 $0.631 $31.84 $1.10 $34.841 $1.59 $38.141 $2.14 $41.74 $2.80 Commercial--300 Gallon Monthly Rate $74.10 $75.65 $1.54 $77.84 $2.55 $80.22 $3.50 $82.72 $4.46 $85.26 $5.53 City Utility Tax $7.41 $7.57 $0.15 $7.781 $0.26 $8.02 $0.351 $8.27 $0.451 $8.53 $0.55 Total [$81.51 1.51 $83.22 $1.69 $85.621 $2.81 $88.24 $3.851 $90.99 $4.911 $93.78 $6.08 Schools--Recycling Monthly Rate $12.55 $12.55 $12.55 $12.55 $12.55 $12.55 City Utility Tax $1.25 $1.25 $1.25 $1.251 $1.25 $1.25 Total $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 G -26 Rate Su�n�m &��,-y Limited Tax General Obligation and revenue bonds to be used for landfill bluff stabilization • Transfer Station • Proposed overall annual rate increase for the Transfer Station is 5.3% through 2019 period • Solid Waste Collections • Proposed annual increase of 5.6% through 2018, dropping to 4.0% in 2019 Transfer Station proposed rates are one-half of the increase previously estimated • Solid Waste Collections proposed rates remain the same as previously estimated, except for the 2019 reduction G -27 Solid Waste Utility Rates 2015 - 2019 May 20, 2014 Solid Waste Utility Rates 2015 - 2019 Rate Setting • Needed to demonstrate to bond rating agencies and prospective bond buyers that Council: • Has the authority to set rates; and • Willingness to set rates to generate revenue stream to pay for bond debt service • Council retains the right to modify the rates in the future • Each year as part of the utility rate setting process Council will review and either confirm or modify rates previously adopted • Surcharge remains in effect for the life of the bonds — 25 years • Rates would be effective January 1 of each respective year Solid - Collections Proposed Rates 2014 2015 2016 2017 2018 2019 Rate I Rate ISurchargel Rate ISurchargel Rate ISurchargel Rate Isurcha r el Rate ISurcharge Residential--Weekly Monthly Rate $29.25 $30.63 $32.08 $33.65 $35.31 $36.09 City Utility Tax 2.92 3.06 3.21 3.37 3.53 3.61 Total $32.17 $33.69 $35.29 $37.02 $38.84 $39.70 Residential--EOW(Every Other Week) Monthly Rate $18.50 $19.09 $20.00 $20.97 If • $22.00 $22.49 City Utility Tax 1.85 1.91 2.00 2.10 2.20 2.25 Total $20.35 $21.00 $21.99 $23.07 �• $24.20 $24.74 Residential--Yard Waste Monthly Rate $7.64 $7.73 $7.88 $8.05 $8.22 $8.40 City Utility Tax 0.76 0.77 0.79 0.80 0.82 0.84 Total $8.40 $8.50 $8.67 $8.85 $9.04 $9.24 Commercial--90 Gallon Monthly Rate $24.45 $26.50 $28.95 �� $31.67 $34.68 $37.94 City Utility Tax 2.44 2.65 MOO• 2.89 3.17 3.47 3.79 Total $26.89 $29.15 $31.84 $34.84 $38.14 $41.74 Commercial--300 Gallon Monthly Rate 27.41 $75.65 $77.84 $80.22 $82.72 $85.26 City Utility Tax 7.57 7.78 8.02 8.27 8.53 Total $83.22 $85.62 $88.24 $90.99 $93.78 Schools--Recycling Monthly Rate $12.55 $12.55 $12.55 $12.55 $12.55 $12.55 City Utility Tax 1.25 1.25 1.25 1.25 1.25 1.25 Total $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 Solid - Transfer Station Proposed Rates 2014 I 2015 1 2016 1 2017 1 2018 1 2019 Rate I Rate ISurchargel Rate ISurchargel Rate ISurchargel Rate Surcharge I Rate Surcharge Transfer Station Tipping Fees Tax Exempt Transfer Station--MSW Monthly Rate $139.13 $139.13 $141.91 $144.75 $147.65 $150.60 City Utility Tax n/a n/a n/a n/a n/a n/a Total $139.13 $139.13 $141.91 $144.75 $147.65 $150.60 Tax Exempt Transfer Station--Yard Waste Monthly Rate $29.09 $29.09 $29.67 $30.27 $30.87 $31.49 City Utility Tax n/a n/a n/a - n/a - n/a - n/a - Total $29.09 $29.09 $29.67 $30.27 $30.87 $31.49 Tax Exempt Transfer Station--Biosolids Monthly Rate $74.06 $74.06 $75.54 $77.05 $78.59 $80.16 City Utility Tax n/a n/a n/a - n/a - n/a - n/a - Total $74.06 $74.06 $75.54 $77.05 $78.59 $80.16 Self Haul--MSW Monthly Rate $157.51 $157.51 $160.66 $163.87 $167.15 �$170.49 City Utility Tax 12.60 12.60 12.85 13.11 13.37 13.64 Total $170.11 $17011 $173.51 $176.98 $180.52 84.13 Self Haul--Tires Monthly Rate $157.51 $157.51 $160.66 $163.87 $167.15 $170.49 City Utility Tax 12.60 12.60 12.85 13.11 13.37 13.64 Total $170.11 $170.11 $173.51 $176.98 $180.52 $184.13 Self Haul--Asbestos Monthly Rate $414.11 $414.11 $422.39 $430.84 $439.46 $448.25 City Utility Tax 33.13 33.13 33.79 34.47 35.16 35.86 Total $447.24 $447.24 $456.18 $465.31 $474.61 $484.11 Self Haul--Contaminated Soils Monthly Rate $220.15 $220.15 $224.55 $229.04 $233.62 $238.30 City Utility Tax 17.61 17.61 17.96 18.32 18.69 19.06 Total $237.76 $237.76 $242.52 $247.37 $252.31 $257.36 Self Haul--Yard Waste Monthly Rate $43.70 $43.70 $44.58 $45.47 $46.38 $47.31 City Utility Tax 3.50 3.50 3.57 3.64 3.71 3.78 Total $47.20 $47.20 $48.14 $49.11 $50.09 $51.09 Self Haul--Metal&White Goods Monthly Rate $66.94 $66.94 $68.27 $69.64 $71.03 $72.45 City Utility Tax 5.35 5.35 5.46 5.57 5.68 5.80 Total $72.29 $72.29 $73.74 $75.21 $76.71 $78.25 Blue Mountain Monthly Rate $219.81 $219.81 $224.21 $228.70 $233.27 $237.93 City Utility Tax 17.59 17.59 17.94 18.30 18.66 19.03 Total $237.40 $237.40 $242.15 $246.99 $251.93 $256.97 RT 'j"ORT NGELES A S H I N G T O N, U. S. A. A111111111111111111111111111 P, CITY COUNCIL MEMO DATE: May 20, 2014 To: CITY COUNCIL FROM: BYRON W.OLSON,CHIEF FINANCIAL OFFICER SUBJECT: A RESOLUTION of the City Council of the City of Port Angeles, Washing- ton, adopting Financial Policies for the City of Port Angeles. Summary: The City has been involved in an extended process to develop its Long-Range Finan- cial Plan. As part of that development process, was the consolidation of all financial policies into a single, unified document more readily accessible to Councilmembers, staff and the public. Included in the Financial Policies document are policies related to the City's Long-Range Finan- cial Plan as well as Operating Policies, Accounting & Reporting Policies, Budget Policies, Debt Management Policies, Investment Policies, Purchasing Policies and Post-Issuance Compliance for Governmental Bonds Policies. In a separate but related matter, there is a proposed ordinance recommending repeal of Section 3.05, Purchasing Policies and Procedures and Section 3.06, Investment Policies. They will be re- placed with similar policies included in the Financial Policies document proposed for adoption by Council. Recommendation: Staff recommend that Council consider the following: • Continue the Public Hearing from the May 6, 2014 Council Meeting • Close the Public Hearing • Move to adopt a Resolution of the City Council of the City of Port Angeles, Washington, adopting Financial Policies for the City of Port Angeles Background/Analysis: Background/Analysis: We have held two (2) separate work sessions (January 28t and March 25t ) with Council to review the proposed policies and gather input on recommend changes to the proposed policies. In addition, we held a public hearings on May 6t' and first reading of the resolution to adopt the City of Port Angeles Financial Policies. By way of background, the City has a variety of financial-related policies that have been adopted by ordinance, resolution, or City Manager direction. They exist in a variety of forms and formats G - 28 Staff Report to Council Regarding Adoption of Financial Policies Page--2— and have not been consolidated into a unified document for ease of use by Council, staff or the General Public. Combined with the efforts on the City's Long-Range Financial Plan, staff began to look at all ex- isting financial pronouncements of the City. Quickly, it became very evident that the lack of a single, comprehensive document created opportunity for confusion and lack of compliance with established policy direction for the City. The Long-Range Financial Planning process also facilitated the need to review the existing poli- cies to make sure that they could meet the existing and future needs of the City in conformance with the City's long-range vision and goals. The proposed Financial Policies include the following: 1. Financial Policies a. Goals&Objectives b. Fiduciary Responsibility c. Annual Review and Recommendations for Changes to Financial Policies 2. Long-Range Financial Policies 3. Operating Policies 4. Accounting &Reporting Policies 5. Budget Policies 6. Debt Management Policies 7. Investment Policies 8. Purchasing Policies 9. Post-Issuance Compliance for Governmental Bonds Policies In the attachments, you will see a "red-line" version that notes all of the changes made to the doc- ument following May 61' Public Hearing and first reading of the resolution by the City Council. Also attached is a "clean" copy of the Financial Policy manual that incorporates all of the changes noted in the "red-line" version. Most of the change reflect further review and editing of the document to clarify/correct for gramattical errors, spelling errors and punctuation errors. A more substantive change is the proposed deletion of Section 8.23 Approval from the City At- torney on Change Orders. The City Attorney has requested deletion of that section to reduce the potential for delay in the timely processing of a change order. Other more substantive changes include: • Proposed deletion of Section 3.5.12.4.5 regarding the water treatment plant maintenance and oper- ation reserve as it is now provided within the Water Fund 9402 and not a separate fund. • Proposed addition of the following language to Section 8.1.1: "It is not the intent of this policy to limit or prohibit contracting procedures or options authorized by State law." The change is pro- posed to allow the City to take advantage of new, changing, and evolving contracting procedures authorized under state law. In addition, in a related Ordinance under consideration, we are requesting that the City Council repeal Section 3.05, Purchasing Policies and Procedures and Section 3.06, Investment Policies will be specifically addressed in the Financial Policies proposed for adoption by the City Council. If you have any questions prior to the meeting,please give me a call or send me an e-mail. G - 29 �r uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum Adopted lby dne Part n gdes Cuoty Caundl G - 30 Financial Policies (JLy of Ilo LAi7E;des TABLE OF CONTENTS 1. FINANCIAL POLICIES..................................................................................................................4 1.1. Goals&Objectives:........................................................................................................................................................................4 1.2. Fiduciary Responsibility:................................................................................................................................................................4 1.3. Annual Review and Recommendations for Changes to Financial Policies:...................................................................................4 2. LONG-RANGE FINANCIAL POLICIES..........................................................................................5 2.1. Resolution of Conflict between Policies:.......................................................................................................................................5 2.2. Ability to Pay:.................................................................................................................................................................................5 2.3. Use of Reserves:.............................................................................................................................................................................5 2.4. Unassigned Fund Balance:.............................................................................................................................................................5 2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund:...................................................................................................6 2.6. Issuance of New Debt and Ability to Pay:......................................................................................................................................6 2.7. Considerations for Debt Financing:................................................................................................................................................6 2.8. Disposition of Unused Property.....................................................................................................................................................6 2.9. Use of Highly Volatile Funding Sources:........................................................................................................................................7 2.10. Potential for Segmenting Public Works Projects:..........................................................................................................................7 2.11. Capital Funding Priorities:..............................................................................................................................................................7 2.12. Use of One-time Revenues:...........................................................................................................................................................7 2.13. Property Tax and Future Budgets:.................................................................................................................................................7 2.14. Use of Banked Property Tax Capacity:...........................................................................................................................................8 2.15. Utility Excise Tax Rates:.................................................................................................................................................................8 2.16. Setting of Fees and Charges for Building Permits:.........................................................................................................................8 2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services:...........................................................................8 2.18. Utility Rate Design:........................................................................................................................................................................8 2.19. Economic Development Fund:.......................................................................................................................................................9 2.20. Implementation of Utility Rate Increases:.....................................................................................................................................9 2.21. Annexation and Cost of Service Analysis:......................................................................................................................................9 2.22. Employee Salaries and Benefits:....................................................................................................................................................9 2.23. Employee Contributions for Health Insurance:.............................................................................................................................9 2.24. Payments by the City to Vendors and Employees:......................................................................................................................10 3. OPERATING POLICIES..............................................................................................................11 3.1. Goals.............................................................................................................................................................................................11 3.2. Revenue Policies..........................................................................................................................................................................11 3.3. Expenditure Policies.....................................................................................................................................................................12 3.4. Capital Improvement Policies......................................................................................................................................................13 3.5. Reserve Fund Policies...................................................................................................................................................................14 4. ACCOUNTING&REPORTING POLICIES...................................................................................17 4.1. Accounting Requirements:...........................................................................................................................................................17 4.2. BARS—Budgeting,Accounting and Reporting System:...............................................................................................................17 4.3. Requirements of the Finance Department:.................................................................................................................................17 4.4. External Auditing Requirement:..................................................................................................................................................17 5. BUDGET POLICIES....................................................................................................................18 5.1. Primary Budget Responsibility.....................................................................................................................................................18 5.2. Operating Budget.........................................................................................................................................................................18 5.3. Budgetary Control........................................................................................................................................................................19 6. DEBT MANAGEMENT POLICIES..............................................................................................20 6.1. Goals.............................................................................................................................................................................................20 6.2. Short-Term Debt..........................................................................................................................................................................20 6.3. Long-Term Debt............................................................................................................................................................................20 6.4. General Obligation Bond Policy...................................................................................................................................................21 7. INVESTMENT POLICIES............................................................................................................22 7.1. Goals.............................................................................................................................................................................................22 7.2. Objectives.....................................................................................................................................................................................22 8. PURCHASING POLICIES...........................................................................................................27 2111agc G - 31 Financial Policies (JLy of Port Angdes 8.1. Goal..............................................................................................................................................................................................27 8.2. Right to Establish,Amend or Repeal...............................................................................................Error!Bookmark not defined. 8.3. Financial Information Provided to Council..................................................................................................................................27 8.4. Purchasing Policy Definitions.......................................................................................................................................................28 8.5. Policy Requirements....................................................................................................................................................................29 8.6. Requisitioned Purchase Orders(PO)............................................................................................................................................29 8.7. Blanket Purchase Order(BPO).....................................................................................................................................................29 8.8. Receipt of Goods..........................................................................................................................................................................30 8.9. FPO(Field Purchase Order)..........................................................................................................................................................30 8.10. Invoicing.......................................................................................................................................................................................30 8.11. Check Signing...............................................................................................................................................................................30 8.12. Approval of Payment Claims........................................................................................................................................................30 8.13. Contracts......................................................................................................................................................................................31 8.14. Bidding Requirements..................................................................................................................................................................31 8.15. Lowest Responsible Bidder (PAMC 3.05.050).............................................................................................................................31 8.16. Bid Inspection (PAMC3.05.055)..................................................................................................................................................33 8.17. Authority to Enter into Contracts,Leases or Rental Agreements (PAMC 3.05.050)...................................................................33 8.18. Small Purchase Contracts (PAMC 3.05.070)................................................................................................................................33 8.19. MRSC Rosters (PAMC 3.05.080)..................................................................................................................................................34 8.20. Small Works Rosters (PAMC 3.05.085)........................................................................................................................................34 8.21. Consulting Services Rosters (PAMC 3.05.090).............................................................................................................................35 8.22. Public inspection of purchase,small works roster,or limited public works awards (PAMC 3.05.100).....................................36 8.23. Approval from the City Attorney on Change Orders:..................................................................................................................39 8.24. Change orders on construction contracts and amendments to professional service agreements (PAMC 3.05.110)................39 8.25. Definition of credit card (PAMC 3.05.120)..................................................................................................................................39 8.26. Issuance,use and control of credit cards (PAMC3.05.130)........................................................................................................39 9. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS..............................................41 9.1. Scope:...........................................................................................................................................................................................41 9.2. Purpose:.......................................................................................................................................................................................41 9.3. Schedule of Review:.....................................................................................................................................................................41 9.4. Requirements at Bond Closing:....................................................................................................................................................41 9.5. Requirements after Bond Closing:...............................................................................................................................................41 9.6. Officials or Employees Responsible for Review:..........................................................................................................................41 9.7. Investment of Bond Proceeds:.....................................................................................................................................................43 9.8. Use of Bond-Financed Facilities:..................................................................................................................................................45 9.9. Continuing Disclosure:.................................................................................................................................................................45 9.10. Material event notices:................................................................................................................................................................46 9.11. Compliance with Bond Covenants:..............................................................................................................................................47 3111agc G - 32 Financial Policies (Ry of Port Angel:es 1. FINANCIAL POLICIES 1.1. Goals&Objectives: 1.1.1. The Financial Policies assemble all of the City's key financial policies in one document. This comprehensive document provides the guidelines to ensure that the City is financially able to meet its immediate and long-term service objectives. The individual policies contained herein serve as guidelines for both the financial planning and internal financial management of the City. 1.2. Fiduciary Responsibility: 1.2.1. The City of Port Angeles is accountable to its citizens for the use of public funds. Municipal resources must be used prudently to ensure adequate funding for the services,public facilities,and infrastructure to meet the present and future needs of the community. These policies safeguard the fiscal stability required to achieve the City's goals and objectives. 1.3. Annual Review and Recommendations for Changes to Financial Policies: 1.3.1. The Chief Financial Officer shall,on an annual basis,prepare and deliver a report to the City Council and City Manager detailing the results of the review of the City of Port Angeles Financial Policies. In the report,the Chief Financial Officer shall make recommendations for revisions to existing policies,addition of new policies or the deletion of existing policies to accommodate any changes in generally accepted accounting principles(GAAP),changes in state regulations and laws or changes in federal regulations and laws. 1.3.2. Should a change be required in the City's Financial Policies as a result of a court decision or changes in state or federal laws before the City Council can review and take any action,the City Manager,upon recommendation by the Chief Financial Officer,is empowered to make any revisions to existing policies,creation of new policies or deletion of existing policies to allow the City of Port Angeles to be in compliance with governing authorities. 1.3.2.1. Provided that when the City Manager makes such change,the Chief Financial Officer shall immediately inform the City Council in writing of the change,the reason necessitating the change and the anticipated date the proposed revision will come before Council for their consideration. 4 1 11 a g c G - 33 Financial Policies (Ry of Port Angel:es 2. LONG-RANGE FINANCIAL POLICIES 2.1. Resolution of Conflict between Policies: 2.1.1. If there is any conflict between the Long-Range Financial Policies and an individual financial policy contained elsewhere in this document,the Long-Range Financial Policy shall govern. In such case,the Chief Financial Officer shall notify the City Council and the City Manager in writing of the conflict together with recommendations that will correct any conflict going forward. 2.2. Ability to Pay: 2.2.1. Council shall consider the overall impact on the community and its"ability to pay" against the need to enact any tax,utility rate or fee/charge increase. 2.3. Use of Reserves: 2.3.1. Council shall not use reserves/fund balance as a funding source for on-going operations except on an emergency,short-term basis. 2.3.1.1. The use of rate stabilization reserves to provide for a"phase-in"of a larger utility rate increase shall be permitted provided that Council has adopted a scheduled plan for the utility rate increases as well as a plan to replenish the rate stabilization reserve account for funds previously advanced. 2.4. Unassigned Fund Balance: 2.4.1. Council shall direct that General Fund unassigned fund balance("reserves')be increased from its current minimum level of 10%of the current year General Fund expenditures to 25%of the current year General Fund expenditures. 2.4.1.1. To meet the additional funding requirement,Council shall consider the following actions in rank priority: 2.4.1.1.1. Allocation of any savings generated from prior year operations in the General Fund; 2.4.1.1.2. Allocation of additional utility excise tax revenues as a result of Council-adopted utility rate increases; 2.4.1.1.3. Allocation of new revenues to the General Fund resulting from levying the 1.0%increase in property tax as allowed by state law; 2.4.1.1.4. Allocation of any new sales tax revenue projected in the subsequent year operating budget for the General Fund;and 2.4.1.1.5. Reduction in overall spending in the General Fund necessary to generate the resources to be allocated to the General Fund unassigned fund balance as authorized by Council. 2.4.2. Council recognizes that the actions required to achieve a 25%unassigned fund balance in the General Fund may take an extended period to achieve. Therefore,the Council shall target a five-year horizon to achieve the desired funding level and Council shall review the target funding level on an annual basis as part of its deliberations for the next year's operating budget. 5 1 11 a g c G - 34 Financial Policies (Ry of Port Angel:es 2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund: 2.5.1. Council shall consider implementing a"phase-out'of General Fund subsidy for the Street Fund(Fund#102)and the Medic 1 Utility Fund(Fund#409). 2.5.2. The phase-out shall be over a period of not less than three(3)years nor more than five (5)years. 2.5.3. Consideration of replacing funding currently provided by the General Fund for the Street Fund shall include the option of the creation and implementation of a Transportation Benefit District(TBD). 2.5.4. Prior to consideration of either a Council-approved TBD or placement on the ballot for voter-approval,the Chief Financial Officer together with the Director of Public Works and Utilities shall prepare a report for consideration by the City Council and City Manager that: 2.5.4.1. Analyzes the proposed method of funding for the TBD,provide an estimate of the revenue for the next six(6)years to be generated if the TBD is approved,and provide a specific list of projects to be funded along with a timeline for completion of the identified projects. 2.5.5. Replacement funding for the Medic I Utility subsidy currently provided by General Fund for the Medic I Utility Fund shall be coordinated with an upward adjustment to applicable Medic I utility rates as provided in a Cost of Service Analysis(COSA). The COSA shall also include a time-line for the utility rate increases intended to replace funding support from the General Fund. 2.6. Issuance of New Debt and Ability to Pay: 2.6.1. Council shall consider,prior to the issuance of any new general government or utility debt,the overall impact of the City's ability to repay the debt obligation from existing taxes or utility rates. 2.6.2. If new taxes and/or increases in utility rates are necessary to generate revenue for the new debt service,the Chief Financial Officer shall provide the City Council and the City Manager a report detailing the annual and total estimated costs of the debt repayment and the plan or schedule for future tax and/or utility rate increases required to pay for the new debt. 2.7. Considerations for Debt Financing: 2.7.1. Council shall require the following for consideration of debt financing for projects: 2.7.1.1. IV-3-long-term debt financing is proposed,a financial analysis shall be required prior to any approval of the project that analyzes the long-term sustainability of funding from City resources,,,as well as the overall impact to the City's total debt obligation. 2.7.1.2. Any maintenance and operation(M&O)costs associated with the completed project must be identified along with the proposed source of funding for the M&O costs prior to seeking Council approval of the capital project. 2.8. Disposition of Unused Property,„o„ 2.8.1. Council shall consider selling of the Niichel property and other unused City properties to allow the City to have the resources to meet the debt service obligations of the 2005 Limited Term General Obligation Bond and its$1,000,000 balloon payment in 2021. 6 1 11 a g c G - 35 Financial Policies (Ay of Port Angel:es 2.9. Use of Highly Volatile Funding Sources: 2.9.1. Council shall prohibit the use of highly volatile funding sources such as Lodging Tax ("hotel-motel tax"),Real Estate Excise Tax I(REET-1),or Real Estate Excise Tax II(REET-11) for debt service or other long-term commitments. Preference for use of such volatile funding sources should be given to one-time capital expense,short-term funding commitments for a capital expense or saving to create a funding pool that can"cash- out"a capital project. 2.10. Consideration for Smaller Scale Public Works Projects: 2.10.1. Council shall require that the Department of Public Works and Utilities examine dd c ii i'is, proposed public works construction schedule to identify any opportunities to encourage local contractors to bid on projects that are 4x4+-(—in line with their company's economic resources and/or bonding capabilities. 2.11. Capital Funding Priorities: 2.11.1. Council shall require that first priority for funding of capital projects should be given to those projects designed to preserve and maintain existing infrastructure. 2.11.1.1. Council has established the fd1(2\n%iit,S rank order the follo eligrh: 2.11.1.1.1.Legal and statutory requirements and mandates provided realistic and affordable sources of fund;nt, are available to the City. 2.11.1.1.2.Continuation of multi-year projects provided realistic and affordable sources of funding are available to the City. 2.11.1.1.3.Capital funding shall be given to those projects that leverage City funding with grants from the State and/or federal agencies. 2.11.1.1.4.Capital funding shall be given to public-private partnership projects, the City can leverage its contribution with private dollars to enable a more economically diverse project vekh who o the primary risk for the long-term financing is transferred to a private partner. 2.12. Use of One-time Revenues: 2.12.1. Council shall require that one-time revenues or revenues significantly above the budgeted revenue target be used for one-time expenses and not be utilized to fund recurring expenses such as salaries and wages or debt service. 2.13. Property Tax and Future Budgets: 2.13.1. Council shall require that in the development of all preliminary annual operating budgets,the Chief Financial Officer should include a 1.0%property tax revenue increase for consideration by Council. 2.13.2. The Chief Financial Officer shall forward to the City Council and City Manager prior to any approval from Council for the 1.0%property tax increase a report that details the estimated revenue that may be generated if the 1.0%increase would be approved by Council. In addition,the report shall also include an analysis of the potential long-term impact on the General Fund if Council decided not to levy the 1.0%increase. IL7 1 11 a g c G - 36 Financial Policies (Ay of Port Angel:es 2.14. Use of Banked Property Tax Capacity: 2.14.1. Council shall not consider levying of any"banked"property tax levy capacity unless the following conditions exist: 2.14.1.1. The Council is considering adopting an annual budget that requires a reduction in core services as identified by Council;and 2.14.1.2. Council has voted to authorize the implementation of the 1.0%in property tax collections. 2.15. Utility Excise Tax Rates: 2.15.1. Council shall not consider any increase to the City's utility excise tax rates through at least the end of the 2019 fiscal year. 2.15.2. Prior to any proposal to Council for an increase in a utility excise tax rate,the Chief Financial Officer shall prepare a report,fcri,:the City Council and the City Manager,,,noting the amount of the proposed tax increase,an estimate of new or additional annual revenues for the next six(6),years and the need for the additional funding to be derived from the increased utility excise tax rate. 2.16. Setting of Fees and Charges for Building Permits: 2.16.1. Council shall consider that the fees and charges for building permits shall include a total cost recovery of direct and indirect costs. 2.16.2. Council may consider apotential reduction in the fees and charges for a building permit;,, it shall only do so if a project creates long-term family wage jobs and/or an identifiable long-term revenue increase in sales tax as a result of the project's construction. 2.16.3. The Chief Financial Officer, with the Director of Community and Economic Development,shall prepare a report to the City Council and City Manager every three (3)years and prior to consideration of the next annual operating budget that compares the City's building permit fee and charges in comparison to fees and charges from other comparable cities, with an analysis of the net subsidy required of the General Fund to off-set any shortfall in revenues associated with the total building permit operating costs. 2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services: 2.17.1. Council shall require that fees and charges imposed for parks and recreation shall be based on a cost recovery hierarchy. 2.17.2. The cost recovery hierarchy shall give consideration for potential subsidy from other parks and recreation fees and/or the General Fund for programs based on targeted audiences such 4R4-L,children and youth,special populations or broad-based community programs. 2.18. Utility Rate Design: 2.18.1. Council shall require that utility rates be designed to reflect the underlying nature of the costs for each respective utility. 2.18.2. Council may consider establishing differential utility rates for specified utility classes to achieve specific,identifiable goals such as reduced rates to encourage recycling of used tires or construction materials. 8 1 11 a g c G - 37 Financial Policies CILy of Port Angel:es 2.19. Economic Development Fund: 2.19.1. Council shall consider creation and/or identification of a long-term,dedicated funding source for the Economic Development Fund(Fund#103)which,allows for funding of a reserve fund Ice Ih!rw for the collection of resources that could be used as a grant match and/or source of local government direct project funding. 2.20. Implementation of Utility Rate Increases: 2.20.1. Council shall give preference to more frequent,,but smaller,incremental increases to rates,fees,and charges rather than less frequent but larger increases. 2.20.2. In all cost of service analysis(COSA)efforts,preference shall be given to utilizing a "phased-in"approach for all future rate increases,,even if it may be necessary to slow- down or delay planned capital project implementation as part of an overall"ability to pay"analysis within the COSA. 2.21. Annexation and Cost of Service Analysis: 2.21.1. Council shall require a Cost of Service Analysis(COSA)prior to any consideration of a potential annexation. Included in the COSA will be an estimation of costs associated with providing the current level of City services to an area under consideration for annexation as well as an estimate of all revenue that may be derived from the area included in the proposed annexation. 2.22. Employee Salaries and Benefits: 2.22.1. Council shall require a salary and benefit survey to assess 1hdd Iho comparability of salaries,wages,and benefits paid by the City of Port Angeles in comparison to the market place for prospective City employees. Included in that analysis shall be the following: 2.22.1.1. The survey shall be done no more often than every three(3)years nor less often than every five(5)years. 2.22.1.2. The survey shall take into account internal comparability for responsibility and critical importance to the City for short and long-term decision-making. 2.22.1.3. The survey shall take into account external factors including comparable cities,private-sector jobs, other factors that influence the City's ability to recruit and retain qualified employees. 2.22.1.4. The Chief Financial Officer shall prepare and deliver a report in writing to the City Council and City Manager prior to any consideration of a change in salary,wages,or benefit levels for unionized and/or non-represented employees that details the estimated costs of any proposals that are under consideration for approval by Council. 2.22.1.5. The Mayor,with approval of the Council,may appoint a special,ad hoc Council Committee to work with the City Manager in the development of any proposals regarding salaries,wages,and benefits for employees of the City. 2.23. Employee Contributions for Health Insurance: 2.23.1. Council shall require that all employees contribute to the cost of their health insurance coverage for both the employee as well as any family coverage that may be required. 9 1 11 a g C G - 38 Financial Policies (Ay of Port Angel:es 2.23.2. Council recognizes that implementation oft his policy state ment may require amendments to collective bargaining agreements covering various groups of City employees and will need to be negotiated as part of a collective bargaining process. 2.24. Payments by the City to Vendors and Employees: 2.24.1. Council shall require that all payments made by the City be accomplished via electronic funds transfer wherever possible, a means of reducing costs to the City. 10111ag0 G - 39 Financial Policies (Ry of Port Angel:es 3. OPERATING POLICIES 3.1. Goals 3.1.1. To ensure delivery of an exceptional level of municipal services by assuring reliance on ongoing resources and by maintaining a stable financial base. 3.1.2. To ensure that the City is in a position to respond to changes in the economy or new service requirements without an undue amount of financial stress. 3.1.3. To maintain an excellent credit rating in the financial community and assure taxpayers that the City is well managed financially and maintained in sound fiscal condition. 3.1.4. To adhere to the highest accounting and management policies as set by the Government Finance Officers'Association(GFOA),the Governmental Accounting Standards Board(GASB),and other professional standards for financial reporting and budgeting. 3.1.5. To ensure the legal use of financial resources through an effective system of internal controls. 3.2. Revenue Policies 3.2.1. The City will strive to maintain a diversified mix of revenues in order to maintain needed services during periods of declining economic activity. 3.2.2. General Fund revenue estimates should be prepared on a conservative basis in order to minimize fluctuations in service levels during periods of economic downturn. 3.2.3. As much as is reasonably possible,City services that provide private benefit shall be supported by fees and charges in order to provide maximum flexibility in the use of general revenues to meet the cost of services of broader public benefit. The City shall establish user charges as follows: 3.2.3.1. Building Permits: Fees shall be based on total cost recovery of direct and indirect expenses. 3.2.3.2. Parks&Recreation: Fees shall be based on a cost recovery hierarchy whereby adult programs help to subsidize programs for children,youth,and special populations. 3.2.3.3. Rental of City Facilities: Fees shall be based on 100%of total direct and indirect costs,plus an amount to be reserved for future major maintenance of assets utilized by the rental if the rental is for private business purposes. As a general requirement,the rental fees shall,at a minimum,cover the direct expenses associated with permitting and facilitating the rental unless the event is sponsored by the City of Port Angeles. 3.2.3.4. In the event that fees and charges do not achieve their targeted cost recovery benchmarks,the City Manager shall recommend a plan for consideration by Council that either reduces programs and services to be offered or provides for a one-time subsidy from the General Fund for the current fiscal year's operation. 3.2.3.5. Consideration of any future subsidy from the General Fund shall be included in discussions by Council prior to the adoption of the next fiscal year's budget. 11 � f f G - 40 Financial Policies CiLy of Port Angel:es 3.2.4. The City shall systematically review user fees and rates and consider adjustments as necessary to take into account the effects of additional service costs and inflation. Rate studies shall take into account direct and indirect costs of operations,administration, plant maintenance,debt service,depreciation of capital assets,and other related costs. 3.2.5. Proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes will be accounted for in separate special revenue funds,,,unless the Chief Financial Officer issues a finding that directs the revenue to be accounted for in a different fund for a specific reason. Budgeted special revenue funds will be included and reviewed in the City's annual budget process. 3.2.6. The City will follow an aggressive policy of collecting all monies due,to the extent that the collection efforts are cost effective. 3.2.6.1. The City may elect to not collect minor amounts due the City if the costs of collection equal or exceed the amount of money to be collected. The Chief Financial Officer shall determine on an annual basis what constitutes a minor amount referenced above and shall inform the Council and City Manager as to the determination of what constitutes a minor amount. 3.2.7. Economic downturns and anticipated funding shortfalls will be analyzed by the Chief Financial Officer and City Manager for potential solutions. Deficit financing and borrowing to support on-going expenditures is not the policy of the City as a response to long-term revenue shortfalls. Revenue forecasts will be revised,and expenditures will be reduced to conform to the revised forecast. 3.2.8. All potential grants shall be carefully examined for matching requirements and other City obligations prior to grant acceptance. Some grants may not be accepted if local matching funds cannot be justified. Grants may also be rejected if programs must be continued with local resources after grant funds are exhausted or if„I loy,,,place an unacceptable strain on local resources. 3.2.9. Significant preference shall be given to rate and fee increases that are smaller and applied more frequently than intermittent but significantly larger � increases. 3.3. Expenditure Policies 3.3.1. The City will only propose operating expenditures;that can be supported from on-going operating revenues. Before the City undertakes any agreements that would create fixed on-going expenses,the cost implications of such agreement will be fully determined for current and future years. Capital expenditures may be funded from one-time revenues, but the operating budget expenditure impacts of capital purchases will be reviewed for compliance with this policy provision. 3.3.2. Department directors are responsible for managing their budgets within the total appropriation for their department. 3.3.3. The City will assess charges for services provided internally by other funds. The estimated direct and indirect costs of service will be budgeted and charged to the fund receiving the service. Interfund service fees charged to recover these costs will be recognized as revenue to the providing fund. The allocation method will be reviewed annually. 3.3.4. Emphasis is placed on improving individual and work group productivity rather than adding to the work force. The City will invest in technology and other efficiency tools to 12 1 11 a g c G - 41 Financial Policies (Ry of Port Angel:es maximize productivity. The City will hire additional staff only after the need of such positions has been demonstrated and documented. 3.3.5. All compensation planning and collective bargaining will focus on the total costs of compensation,including direct salary,healthcare benefits,pension contributions, educational and longevity pay,and other non-salary benefits which are a cost to the City. 3.4. Capital Improvement Policies 3.4.1. It is the City's policy to ensure that adequate resources are allocated to preserve existing infrastructure and other capital assets before targeting resources toward construction or acquisition of public facilities or major equipment. 3.4.2. The City will develop a multi-year Capital Facilities Plan(CFP)to identify and coordinate infrastructure,facility,and equipment needs in a way that maximizes the return to the community. All capital improvements will be made according to the adopted CFP. 3.4.3. The Capital Facilities Plan will be formulated using an analysis of long-term,overall resources and will include projected funding sources and ongoing operations and maintenance costs. Future changes in economic or demographic factors identified in the financial forecasting process will be incorporated in the capital budget projections. The plan will be updated annually. Any planned use of debt financing shall include an analysis of debt service costs and funding resources available to pay the associated debt. 3.4.4. The first year of the Capital Facilities Plan will constitute the capital budget for the ensuing budget year. The capital budget and the base operating budget will be reviewed at the same time to assure that the City's capital and operating needs are evaluated in a balanced manner. 3.4.5. A long-range Transportation Improvement Plan(TIP)will provide the framework for the City's future investment in transportation related infrastructure. This ensures that infrastructure projects incorporated into the Capital Facilities Plan(CFP)will be the embodiment of the officially stated direction of the City's Comprehensive Plan and supporting documents. 3.4.6. The City may administer a Local Improvement District(LID)program. For capital projects whose financing depends in part or wholly on an LID,interim financing may be issued to support the LID's portion of the project budget. The amount of the interim financing shall be the current estimate of the final assessment roll as determined by the administering department. 3.4.7. The Citywill determine the most cost effective financing method for all new projects. Whenever possible,the City will use intergovernmental assistance and other outside resources to fund capital projects. Additional funding may come from designated surpluses in the General Fund and certain special revenue funds as outlined in the operating budget policy. 3.4.8. An operating cost projection,including all funding sources,will be required for all projects proposed for funding within six(6)years. 13 1 11 a g c G - 42 Financial Policies (Ry of Port Angel:es 3.5. Reserve Fund Policies 3.5.1. Part of financial stability is to maintain adequate reserves and fund balances. The definition of Fund Balance is the net worth of a fund,measured by total assets minus total liabilities. 3.5.2. In the governmental funds,the City recognizes the following hierarchy of fund balance classifications,which are based primarily on the extent to which the City is bound by constraints placed on resources: Nonspendable-- Amounts that cannot be spent due to form(such^ Formatted:Indent:Left: 1.49",Hanging: as inventories and pre-paid amounts),and amounts that must be maintained 0•64" intact legally or contractually(including the corpus or principal of a permanent fund). In addition,long-term loan and notes receivables,and property held for resale would be reported here unless the proceeds are restricted,committed,or assigned. +.. .w.r. Restricted-- Amounts constrained for a specific purpose by external parties,constitutional provision,or enabling legislation. Committed-- Amounts constrained for a specific purpose as authorized by the City Council. Additional action by the Council is required in order to remove or change the constraints placed on the resources. The action to constrain resources must occur prior to year-end;however,the amount can be determined in the subsequent period. Assigned-- For all governmental funds other than the general fund,any remaining positive amounts not classified as nonspendable, restricted,or committed. For the general fund,the City Manager has been delegated authority to assign amounts intended to be used for a specific purpose. All assigned fund balance requests from departments must be approved in writing by the City Manager and provided to the Finance Department by year-end in order to be officially considered assigned. Amounts reported as assigned should not result in a deficit in unassigned fund balance. Unassigned-- For the general fund,amounts not classified as nonspendable,restricted,committed,or assigned and are available to use for any purpose. The general fund is the only fund that would report a positive amount in unassigned fund balance. For all other governmental funds, unassigned fund balance is the amount expended in excess of resources that are nonspendable,restricted,committed,or assigned. Ifthis results in a deficit in unassigned fund balance,then assigned fund balance shall be reduced. Special Revenue Funds will maintain sufficient fund balances to provide adequate cash flow and to withstand downturns in the economy. These fund balances will be analyzed annually. The General Fund's targeted unassigned fund balance will be a minimum of 25%of expenditures,excluding capital expenditures. This fund balance will be established and maintained to: Offset unanticipated economic downturns; Provide a sufficient cash flow for daily financial needs at all times; 14111agc G - 43 Financial Policies (Ry of Port Angel:es +..�.q.+.w.).,/1.w. Establish aitadequate level of reserves to provide for the timely replacement of equipment;and Sustain City services in the event of a catastrophic event such as a natural/manmade disaster or a major downturn in the economy. If unassigned fund balance falls below the required minimum level, the City Manager shall notify the Council immediately. The Council must adopt a plan to restore this balance to the target level within 60 months. ?.....In addition,the general fund will maintain a committed fund balance to be used as a contingency as specified in PAMC 3.04.040. There are no minimum requirements on the level of contingency fund balance. There are no specific requirements on the level of assigned fund balance in the general fund,unless future revenue streams are specified by the donor or source of funding. � 9 Pw w.).;/. The City will maintain the following reserves for the 444 -2 alai 1(11ai yfunds identified below: +.. .9 .M.w. .M. ...............An operating reserve will be established and maintained to provide sufficient cash flow to meet daily financial needs as recommended by the City's financial advisor. The reserve requirements will be reviewed every three years and will be based upon: .............60 days operating expenses:Electric,Water,and Wastewater Funds. 90 days operating expenses:Solid Waste and Stormwater Funds. Operating expenses exclude ending fund balances,capital purchases,construction costs,debt service payments,and transfers. A rate stabilization reserve will be established and maintained for the Electric Fund to provide a means to mitigate wholesale power purchase cost increases. A rate stabilization reserve will be established and maintained for the Wastewater Fund to provide a means to mitigate retail rate increases based on unforeseen cost increases. These accounts will be analyzed annually to ensure an adequate amount is placed in reserves. A post-closure maintenance reserve within the Solid Waste I FuRs4p SdAloigE4andPlll fund will be established and maintained to provide sufficient cash flow to meet the anticipated cost of maintenance in accordance with State law. This reserve requirement will be reviewed annually. Bond reserves will be created and maintained as required in utility funds in accordance with the provisions set forth in the bond covenants. A contingencies and replacement reserve for the Electric fund will be established and maintained in accordance with bond covenants. 15111agc G - 44 Financial Policies (Aye of Port Angel:es \y/u r I'uRd .... . .ty.,.r.t.I.). The City will maintain reserve funds to meet requirements for the guarantee of debt service in compliance with bond indenture agreements. The City will maintain the self-insurance funds at a sufficient level to provide health care and workers'compensation benefits and avoid catastrophic loss. L The City will maintain equipment replacement reserves as specified in the City's Equipment Replacement and Vehicle Use Policy. he City will maintain cbdecygajg reserves in the.. Formatted:Font:(Default)+Body(Calibri),10 iniormalican II echncalc=l cinrj 1 c K�[<>src,timely rc�yrlcbc c�mc�nt pt csy7(rrcbr�a;�cbnr�/car rbr�r�itican<,tca thc�Q,it„y'<,tc�chncalcary in9rcb<,tresctcsrc��,... The City will maintain an actuarially funded Firemen's Pension Fund as determined by actuarial study. a.9�l.w.r.,�. fy����k�y° �k�r ����;�a�a� f� aa��d��-r��; ra����-a��,,,t�� -0��f�r� �dra��ata��°.�4r��r��rg^y:-N•�aaa��-1�;a, ux�f u�s4�trta�.tt�r�!�,. 16111agc G - 45 Financial Policies (Ry of Port Angel:es 4. ACCOUNTING&REPORTING POLICIES 4.1. Accounting Requirements: 4.1.1. The City's accounting and financial reporting systems will be maintained in conformance with current accepted principles and standards of the Governmental Accounting Standards Board(GASB),Generally Accepted Accounting Principles(GAAP),and the Government Finance Officers Association(GFOA). As a commitment to this policy,the Finance Department will periodically submit its Comprehensive Annual Financial Report (CAFR)for the GFOA Certificate of Achievement for Excellence in Financial Reporting. 4.2. BARS—Budgeting,Accounting and Reporting System: 4.2.1. The State Auditor's Office provides a standard account classification system through its Budgeting,Accounting and Reporting System(BARS). The City will maintain its records on a basis consistent with BARS and current BARS manuals will be maintained in the Finance Department. 4.3. Requirements of the Finance Department: 4.3.1. The Finance Department will maintain financial systems to monitor expenditures, revenue,and performance of all municipal programs on an ongoing basis. Regular monthly financial reports will present a summary of financial activity for the period and the cumulative data for the budget year. 4.3.2. All applicable standard governmental accounting practices will be used to maintain the City's financial records,including the appropriate uses of accrual and modified accrual methods of accounting,encumbrance accounting,current financial resources and economic resources focus for statement presentation,and the proper classification of funds. 4.3.3. The Finance Department will maintain fixed asset and depreciation records for all capital assets owned by the City. The threshold for capitalization of non-infrastructure assets is $7,500. 4.3.4. Under GASB Statement No.34,infrastructure will be included as capital assets in the financial reports. The City will develop and follow a methodology of maintaining infrastructure records,including appropriate depreciation,under the guidelines of the statement. 4.4. External Auditing Requirement: 4.4.1. The State Auditor's Office will annually perform a financial and compliance audit and issue an audit report. Results of the annual audit will be provided to the City Council and public. 17111agc G - 46 Financial Policies (Ry of Port Angel:es 5. BUDGET POLICIES 5.1. Primary Budget Responsibility 5.1.1. The City Manager is responsible for preparing and submitting to the Council a tentative budget for the fiscal year. The City Manager is also responsible for keeping the Council fully advised of the financial condition of the City and its future needs. 5.1.2. The City Council has final responsibility for approving the annual Operating Budget and Capital Budget. 5.1.3. Department directors,under the direction of the City Manager,are responsible for proposing programs,recommending funding levels,and formulating budget proposals for implementing service programs in accordance with established goals and directives. 5.1.4. The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget in compliance with applicable State of Washington statutes governing local government budgeting practices. 5.1.5. The Finance Department provides revenue budget estimates,assists department staff in identifying budget problems and formulating alternative solutions,and prepares and distributes the final budget document. 5.1.6. To facilitate and implement the budget process,the Chief Financial Officer will provide the Council with an annual budget calendar in accordance with State law. 5.2. Operating Budget 5.2.1. The operating budget will define the City's annual financial plan as developed by the City Council in establishing goals and objectives for the ensuing year. 5.2.2. Ongoing revenues should be equal to or greater than ongoing expenditures. Each City fund budget shall identify ongoing resources that at least match expected ongoing annual requirements. One-time cash transfers and non-recurring ending fund balances will be applied to reserves or to fund one-time expenditures;they will not be used to fund ongoing programs. 5.2.3. In accordance with State law,the City Manager is authorized to transfer budgeted amounts within any fund;however,any revisions that alter the total expenditure authority(appropriation)of a fund must be approved by the City Council. 5.2.4. Additional staff positions should be recommended only after the need has been fully substantiated. An increase in the number of full-time equivalent position must be approved by the City Council. The City Manager has the authority to approve additions and/or changes to temporary,seasonal,and part-time positions. Nothing in this paragraph is intended to diminish or interfere with the City Manager's right to control the appointment and removal of City employees. 5.2.4.1. Only the City Council can authorize an increase in the authorized City career staffing complement. Such approval is accomplished through the adoption of the annual operating budget or through subsequent budget amendments approved by the City Council. 5.2.5. The City will maintain a level of expenditures,which will provide for the public well- being and safety of the residents of the community. 5.2.6. The operating budget will provide for appropriate design,construction,maintenance and replacement of the City's capital infrastructure,plant,and equipment. 18 1 11 a g v G - 47 Financial Policies (Ry of Port Angel:es 5.2.7. A multi-year vehicle and equipment maintenance and replacement schedule will be developed based on the City's projections of its future replacement and maintenance needs. The projections will be updated and the schedule revised on an annual basis. 5.2.8. The budget will provide sufficient levels of maintenance and replacement funding to ensure that all capital facilities and equipment are properly maintained and that such future costs will be minimized. 5.2.9. The following criteria must be met to qualify any portion of the year-end General Fund surplus for one-time operations,nonrecurring emergency capital expenditures,or dedicated to the Capital Facilities Plan: 5.2.9.1. There are surplus balances remaining after all reserve requirements and current expenditure obligations are met. 5.2.9.2. An analysis has occurred assuring that the City has an adequate level of short and long-term resources to support the proposed use of surplus balances. 5.2.9.3. The funds are specifically appropriated by the City Council. 5.2.10. Year-end surplus in the Street Fund shall be designated for use in the Capital Facilities Plan or be used for one-time capital expenditures for street and parks projects. Use of surplus for these purposes must be approved by the Council. 5.3. Budgetary Control 5.3.1. The budget will be developed and administered in compliance with applicable State of Washington budgetary statutes. 5.3.2. The Finance Department will maintain a system for monitoring the City's budget performance. The system will include provisions for amending the budget during the year in order to address unanticipated needs or emergencies. 5.3.3. Appropriations requested after the original budget is adopted will be approved only after consideration of the availability of current and future revenues. Such appropriations must be approved by City Council. 5.3.4. Accounting and reporting practices will be maintained to provide accurate and timely monitoring of the City's budget performance. 5.3.5. Monthly budget reports will be issued by the Finance Department to Department Heads regarding the department's actual performance compared to budget estimates. The department also assists in implementing any needed corrective action approved by the City Manager. 5.3.6. Current revenues and operating expenditures will be reviewed quarterly by the City Council,and the Chief Financial Officer will prepare a mid-year assessment of the City's financial position for presentation to the Council. 19111f G - 48 Financial Policies (Ry of Port Angel:es 6. DEBT MANAGEMENT POLICIES 6.1. Goals 6.1.1. All borrowing is subject to approval by the City Council.The basic objectives of the City's debt management policy are: 6.1.1.1. To achieve the lowest possible cost for borrowing. 6.1.1.2. To ensure access to the bond market to adequately provide the capital needed to finance public improvement and other long-term development objectives. 6.1.1.3. To maintain strong and sound credit,demonstrated by its commitment to meet all obligations in a timely fashion. 6.1.1.4. To maintain a level and structure of outstanding indebtedness that does not lead to excessive debt service requirements,thereby avoiding unnecessary strains on the operating budget. 6.1.1.5. To maintain the confidence of lending markets and the taxpayers. 6.1.1.6. To maintain adequate debt service coverage. 6.2. Short-Term Debt 6.2.1. Short-term debt covers a period of one(1)year or less. With careful monitoring and planning of cash inflow and outflow requirements,it is intended that the City will avoid the use of short-term indebtedness to the maximum extent possible. 6.2.2. The City may use short-term debt to cover temporary cash flow shortages resulting from delay in receipting tax revenues or issuing long-term debt or to finance capital construction. 6.2.3. Interfund loans with a repayment period of three years or less,may be used to meet short-term cash flow needs as an alternative to outside debt instruments. Interfund loans will be permitted only if an analysis of the lending fund indicates excess funds are available and that the use of these funds will not adversely affect current operations. 6.3. Long-Term Debt 6.3.1. Long-term debt is defined as debt,that exceeds three years.The City will confine long- term borrowing to capital improvements that cannot be financed from current revenues. 6.3.2. Acceptable uses of bond proceeds will include items;that can be capitalized and depreciated.Refunding bond issues designed to restructure current outstanding debt is an acceptable use of bond proceeds,provided an analysis is done which determines the net present value(NPV)of savings is favorable for the City. 6.3.3. Where possible,the City will use special assessment revenue,or other self-supporting bonds,instead of general obligation bonds. 6.3.4. The City will not use long-term debt for current operations. 6.3.5. The City will maintain communications with bond rating agencies regarding its financial condition. The City will follow a policy of full disclosure on financial reports and bond prospectuses including proactive compliance with disclosure to the Electronic Municipal Market Access(EMMA)according to guidelines established bythe Municipal Securities Rulemaking Board(MSRB). 20 1 11 a g c G - 49 Financial Policies (Ry of Port Angel:es 6.4. General Obligation Bond Policy 6.4.1. Before general obligation bond propositions are placed before the voters,projects proposed for financing through general obligation debt should be included in the Capital Facilities Program and be accompanied by an analysis of the future operating and maintenance costs associated with the project. 6.4.2. Bonds will not be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. 6.4.3. Limited Tax General Obligation(LTGO)Bond Policy: 6.4.3.1. As a precondition to the issuance of limited tax general obligation bonds, alternative methods of financing should also be examined. 6.4.3.2. Limited tax general obligation bonds will be issued under certain conditions: 6.4.3.2.1. A project in progress which requires monies not available from alternative sources; 6.4.3.2.2. Matching fund monies are available which may be lost if not applied for in a timely manner;or 6.4.3.2.3. Catastrophic or emergency conditions exist. 6.4.3.2.4. A clearly identified need that helps achieve Council's desired vision for the City and is in line with the priorities approved by the City Council. 6.4.4. Unlimited Tax General Obligation(UTGO)Bonds and Legal Debt Limits: 6.4.4.1. Under RCW 39.36.020(2),the public may vote to approve UTGO bond issues for general government purposes in an amount not to exceed 2.5%of assessed valuation. Within the 2.5%limit,the Port Angeles City Council may approve LTGO bond issues and/or lease purchases up to 1.5%of the City's total assessed value(RCW 39.36.020(2)and RCW 35.42.200). In addition, state law provides for an additional 2.5%of assessed valuation for parks and open space purposes with a vote of the people. IL- 211f1a G - 50 Financial Policies (Ry of Port Angel:es 7. INVESTMENT POLICIES 7.1. Goals 7.1.1. The goal of the policy is to invest public funds in a manner,that will provide the highest investment return with the maximum security,while meeting the daily cash flow demands and conforming to all Washington statutes governing the investment of public funds. 7.1.2. Available cash will be co-mingled into a common investment portfolio and earnings from such portfolio will be distributed monthly. This policy will apply to all financial assets of the City,which are accounted for in the City's annual financial report. 7.1.3. t;c ci The following general standards shall govern the investment of City funds: 7.1.3.1. All funds not required for immediate expenditure are available for investment. 7.1.3.2. The Chief Financial Officer or City Treasurer shall determine the amount of money available in each fund for investment purposes and shall make investments in accordance with State Statutes applicable thereto,including RCW 35A.40.050 and the policies of the City. 7.1.3.3. All monies available for investment shall be commingled when possible or practical within one common investment portfolio for the mutual benefit of all participating funds,and all income derived therefrom shall be apportioned among the various participating funds in direct proportion of the amount of money invested by each. 7.2. Objectives 7.2.1. The primary objectives,in priority order,of the City's investment activities shall be: 7.2.1.1. Legality: The City's investment will comply with all statutes governing the investment of public funds and the provision of all applicable bond ordinances. 7.2.1.2. Safety: Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 7.2.1.3. Credit Risk: The City of Port Angeles will minimize credit risk,the risk of loss due to the failure of the security issuer or backer,by: 7.2.1.3.1. Limiting investments to the safest types of securities. 7.2.1.3.2. Pre-qualifying the financial institutions,brokers/dealers, intermediaries,and advisers with which the City will do business. 7.2.2. Diversify the investment portfolio so that potential losses on individual securities will be minimized. 7.2.2.1. Interest Rate Risk: The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates,by: 7.2.2.1.1. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations,thereby avoiding the need to sell securities on the open market prior to maturity. 22111agc G - 51 Financial Policies (Ry of Port Angel:es 7.2.2.1.2. Investing operating funds primarily in shorter-term securities, money market mutual funds,or similar investment pools. 7.2.2.2. Liquidity: The City's investment portfolio shall remain liquid to enable the City to meet all I.Ods ldbly�,Lc!2�t22c,operating requirements,-w4 .. . Because all cash requirements cannot be anticipated,investments in securities with active secondary or resale markets are recommended. A portion of the portfolio also may be placed in money market mutual funds or local government investment pools;-w4 2Lfr,Ehn,r;same day liquidity for short-term funds. 7.2.3. Return on Investment(Yield): Yield should become a consideration only after the basic requirements of safety and liquidity have been met. The City's investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles,taking into account the investment risk constraints and liquidity needs. The core of investments are limited to relatively low risk securities,,,in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 7.2.3.1. A security with declining credit may be sold early to minimize loss of principal. 7.2.3.2. A security swap would improve the quality,yield,or target duration in the portfolio. 7.2.3.3. Liquidity needs of the portfolio require that the security be sold. 7.2.4. Prudence 7.2.4.1. The standard of prudence to be applied by investment officials shall be the "prudent investor'rule,which states"...investments shall be made with judgment and care,under circumstances then prevailing,which persons of prudence,discretion and intelligence exercise in the management of their own affairs,not for speculation,but for investment,considering the probable safety of their capital as well as the probable income to be derived." 7.2.5. Delegation of Authority 7.2.5.1. Authority for investment decisions shall be granted to the City Manager, Chief Financial Officer,and City Treasurer. Each is authorized to sign necessary agreements and documents for the purpose of carrying out this policy,which do not obligate the City for the expenditure of funds. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer and/or City Treasurer. 7.2.6. Ethics and Conflicts of Interest 7.2.6.1. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program,or which could impair their ability to make impartial investment decisions. Employees and investment officials authorized to place or approve investments shall not personally,nor through a close relative,maintain any accounts,interest,or private dealings with any firm with which the City places investments,except for regular savings accounts, checking accounts,money market accounts,or other similar transactions which are offered on a non-negotiable basis to the general public. All 23111agc G - 52 Financial Policies (Ry of Port Angel:es persons authorized or approved for investments shall disclose to the City Manager any material financial interest in financial institutions that conduct business within this jurisdiction. All personnel involved in the investment function shall adhere closely to the City's Code of Ethics. 7.2.7. Authorized Financial Dealers and Institutions 7.2.7.1. As required by the Public Deposit Protection Commission(PDPC),,,all authorized public depositories will be located in the State of Washington (RCW 39.58.080). 7.2.7.2. Authorized broker/dealers and financial institutions will be limited to those that meet one or more of the following: 7.2.7.2.1. Financial institutions approved by the Washington Public Deposit Protection Commission;or 7.2.7.2.2. Primary dealers recognized by the Federal Reserve Bank;or 7.2.7.2.3. Non-primary dealers or institutions qualified under U.S.Securities and Exchange Commission Rule 15c3-1(Uniform Net Capital Rule),and a certified member of the National Association of Securities Dealers. 7.2.7.3. Whenever possible,the City shall make an effort to utilize brokers or dealers doing business in the State of Washington,or recognized adequately capitalized dealers on the west coast. 7.2.7.4. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City invests. 7.2.8. Authorized Investments 7.2.8.1. All municipal corporations in Washington State,including the City of Port Angeles,are empowered by statute to invest in securities and deposits authorized by State statute as defined in RCW 35A.40.050. These eligible securities include: 7.2.8.1.1. Investment deposits,including certificates of deposit,with qualified public depositories as defined in RCW 39.58. 7.2.8.1.2. Certificates,notes,or bonds of the United States,or other obligations of the United States or its agencies,or of any corporation wholly owned by the government of the United States(such as the Government National Mortgage Association). 7.2.8.1.3. Obligations of government-sponsored corporations,which are eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System(these include,but are not limited to,Federal Home Loan Bank notes and bonds,Federal Farm Credit Bank consolidated notes and bonds, and Federal National Mortgage Association notes,bonds and guaranteed certificates of participation). 7.2.8.1.4. Bankers'acceptances purchased on the secondary market. 7.2.8.1.5. Bonds of the State of Washington and any local government in the State of Washington,which have,at the time of investment,one 24 1 11 a g c G - 53 Financial Policies (Ry of Port Angel:es of the three highest credit ratings of a nationally recognized rating agency. 7.2.8.1.6. Repurchase agreements for securities listed in 2,3,and 4 above, provided that the transaction is structured so that the City of Port Angeles obtains control over the underlying securities and a Master Repurchase Agreement has been signed with the bank or dealer. g 7.2.8.1.7. State of Washington f rr��,l Govornmont Investment Pool. 7.2.8.1.8. Commercial Paper purchased in the secondary market and having received the highest rating by at least two(2)Nationally Recognized Statistical Rating Organization(NRSROs)at the time of purchase and adhering to the investment policies and procedures adopted by the State Investment Board. 7.2.8.1.9. Mutual funds used specifically for debt issues related to arbitrage. 7.2.9. Safekeeping and Custody 7.2.9.1. All investment securities bought by the City,including collateral being held on repurchase agreements,will be held by the City or in safekeeping by the City's custodian bank. A third party bank trust department may be appointed as agent for the City under the terms of a custody or trustee agreement signed by both the bank and the City. The primary agent of the custodian bank will provide a safekeeping receipt to the City listing the specific instrument,its rate and maturity,and any other pertinent information. All security transactions,including collateral for repurchase agreements, entered into by the City will be conducted on a delivery-versus-payment (DVP)basis. 7.2.10. Diversification 7.2.10.1. It is the policy of Port Angeles to diversify its investment portfolios.To eliminate risk of loss resulting from the over-concentration of assets in a specific maturity,issuer or class of securities,all cash and cash equivalent assets in all funds shall be diversified by maturity,issuer,and by the class of security. In establishing specific diversification strategies,the following maximum percentage of the City's portfolio shall apply: 7.2.10.1.1. Washington State Local Government Investment Pool-100% 7.2.10.1.2. U.S.Treasury Obligations-100% 7.2.10.1.3. Federal Agency securities-100% 7.2.10.1.4. Municipal Investment Accounts-40% 7.2.10.1.5. Certificates of Deposit(CDs)-50% 7.2.10.1.6. Repurchase Agreements(Repos)-40% 7.2.10.1.7. Bonds of State of Washington or any local government in the State of Washington—20% 7.2.10.1.8. Bonds of other states or local governments of a state other than the State of Washington-15% 25111agc G - 54 Financial Policies (Ay of Port Angel:es 7.2.11. Maturities 7.2.11.1. To the extent possible and to preclude sales of securities that could result in a loss,investments will be made to coincide with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements,a portion of the portfolio should be continuously invested in readily available funds such as the Local Government Investment Pool and money market funds, ensure that appropriate liquidity is maintained to meet ongoing obligations. 7.2.11.2. To this extent,10%of the portfolio,at the time of investment,will be comprised of investments maturing within a year. 7.2.11.3. Satisfying this requirement,remaining funds may be invested in authorized securities not to exceed five and a half years in maturity,except when compatible with specific investment needs. Maturities longer than five and a half years must have prior approval of the Chief Financial Officer. 7.2.11.4. To ensure additional liquidity and provide for ongoing market opportunity, the weighted average maturity and effective duration of the overall portfolio shall not exceed three years without the prior approval of the Chief Financial Officer. 7.2.12. Internal Control 7.2.12.1. The controls shall be designed to prevent losses of public funds arising from fraud,employee error,misrepresentation of third parties,unanticipated changes in financial markets,or imprudent actions by employees and officers of the City. 7.2.12.2. Controls deemed most important include: control of collusion,separating transaction authority from accounting and record keeping,custodial safekeeping,clear delegation of authority,specific limitations regarding securities losses and remedial action,written confirmation of telephone transactions,minimizing the number of authorized investment officials, documentation of transactions and strategies,and code of ethics standards. 7.2.13. Performance Standards 7.2.13.1. The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles,taking into account the City's investment risk constraints,the cash flow characteristics of the portfolio,and State and local laws and ordinances that restrict investments. The City will report investment yield benchmarked to the yield of the 6- month Treasury Bill and/or the return provided by the State Investment Pool. 7.2.14. Reporting 7.2.14.1. The City Treasurer is charged with the responsibility of preparing a report on investment activity. 7.2.15. Distribution of Income 7.2.15.1. Interest income received shall be distributed monthly from the common portfolio to all participating funds based on the average cash balance included in the common portfolio for the earning period. 26111f G - 55 Financial Policies City of Port Angel:es 8. PURCHASING POLICIES 8.1. Goal 8.1.1. This document establishes guidelines and clarifies the policies for purchasing supplies and materials,and contracting for services by the City of Port Angeles. The City of Port Angeles dedicates itself to purchasing goods and services seeking maximum operational value thereby assuring the prudent and economical use of public monies. The purpose of this policy is to ensure that authorized personnel approve purchases in advance whenever possible,that expenditures are recorded electronically as soon as possible,to maximize internal controls without sacrificing efficiency,and to provide management with the ability to analyze purchasing patterns and cash flow requirements. ft is chart I,ho f,loihi of IIL„is 122licy i2 U11111 or 12i-(±Ibll,coialrad 11,r larrr r 1,i.ai'r s rri'rrlalirrias d1:11larr1172d I.yy Sidio law. 8.2. Interpretation of this Policy. 8.2.1. The Chief Financial Officer shall be responsible for interpretation of this Policy. 8.3. Financial Information Provided to Council 8.3.1. Prior to any consideration for approval of a motion,resolution,or ordinance dh A frri”City Council authorization to purchase or acquire any goods or services, including professional services and construction contracts,for the City of Port Angeles, the Council shall be provided with a Fiscal Note prepared by the Chief Financial Officer or designee that details the source and amount(s)of revenues proposed to pay for the purchase together with a budget for the acquisition. 8.3.1.1. The Fiscal Note is required to be included in the Agenda packet delivered to the Council prior to the meeting as well as the packet posted on the City's website. 8.3.1.2. No proposed acquisition of goods or services may be considered by the Council without the inclusion of a Fiscal Note designed to allow the City Council to make an informed decision on the particular issue at hand. 8.3.1.3. If the proposed acquisition of goods or services is part of a larger project,the Fiscal Note shall include the total budget for the project,the source of funding and a summary of all expenditures made prior to the proposed acquisition. 8.3.2. On a quarterly basis,the Chief Financial Officer shall provide Council with a written report and analysis of the City's Operating and Capital budgets. The report shall be provided by the 25th day following the end of the quarter unless the Chief Financial Officer has informed the City Council and City Manager of the need for a delay in the delivery of the report. In the message from the Chief Financial Officer informing the City Council and City Manager ofthe delay in providing the quarterly report,the Chief Financial Officer shall provide the reason for the delay together with the projected date for the delivery of the quarterly report. 8.3.2.1. The quarterly report shall be posted to the City website following delivery to the City Council. 27 1 11 a g c G - 56 Financial Policies (Ry of Port Angel:es 8.4. Purchasing Policy Definitions 8.4.1. Approval Levels: Set by City Council,these are specific dollar levels of authorization for the approval of purchases and payments made on behalf of the City of Port Angeles as noted below. Purchase Amount Authorizing Official/Entity $0.01-$4,999.99 Department Director $5,000.00-$14,999.99 Department ik,u�4 Dirodor&Chief Financial Officer $15,000.00-24,999.99 City Manager,Department I k,u d Dirodor&Chief Financial Officer $25,000.00r2i r,1 2atr,r+ City Council+City Manager,Department I k,uu 4 Dirod or&Chief Financial Officer 8.4.2. Any contract or agreement for the purchase of goods or services shall require authorizing signatures: Purchases of Less than$5,000: Purpose Authorizing Official/Entity Approval to purchase Department Director Purchases of Greater than$5,000 but less than$14,999.99: Purpose Authorizing Official/Entity Approval to Purchase Department Director Availability of Funds Department Director,Chief Financial Officer Purchases of Greater than$15,000: Purpose Authorizing Official/Entity Approval to Purchase City Manager Department Approval Department Director Availability of Funds Chief Financial Officer Approval as to Form City Attorney 8.4.3. Blanket Purchase Order(BPO): Otherwise known as an"Open Purchase Order,"a BPO is a purchase order used for purchases with local vendors or frequently utilized vendors. BPOs are created with a set dollar amount and are received and invoiced as purchases are made. BPOs are generally for items that are needed daily,but not always anticipated. BPOs are also used for annual agreements such as copier charges, maintenance agreements,etc. 8.4.4. Emergency Purchases: An emergency purchase is created by an urgent need affecting the health and safety of citizens,which requires immediate action,and where the occurrence or condition is"unforeseen." Lack of anticipation or planning cannot be deemed as a cause for declaring an emergency. 8.4.5. Field Purchase Order(FPO): FPOs can be used as a quick way to obtain goods or services. An FPO can also be used to request advance payments for legitimate business expenses such as travel,food,lodging,and conference fees. FPO's should not be used for purchases over$1,000 unless as specified in policy. 8.4.6. Purchase Order(PO): Computer generated numbered document used to authorize a vendor to ship merchandise or to perform services for a proposed price. POs are 28111agc G - 57 Financial Policies (Ry of Port Angel:es generated by a requisition,or documentation that has been approved at all required approval levels. With regular purchase orders,you must add the line item information describing the merchandise or services when you create them. With blanket purchase orders,you can add the line items when you receive or invoice them. 8.4.7. Requisition: A request to order goods that must be processed through approval levels before a purchase order can be generated. Funds are then pre-encumbered at this requisition phase of purchasing. Buyers then process items from approved requisitions onto purchase orders to selected vendors. 8.4.8. Sole Source&Single Source: A sole source can be a manufacturer,software developer or service provider that sells direct and there are no other sources offering an"equal" product or service. A single source could be a distributor/wholesaler/retailer that has a contractual agreement for a specific territory to the exclusion of others. 8.5. Policy Requirements 8.5.1. All employees making purchases on behalf of the City of Port Angeles shall maintain effective and professional public,vendor and customer relationships. Opportunity will be provided to all responsible suppliers to do business with the City of Port Angeles unless this purchase is required from a sole source. No official or employee will be interested financially in contracts or purchases entered into by the City of Port Angeles. 8.5.2. Most purchases will be processed with one of these options: 8.5.2.1. Requisitioned Purchase Orders(PO) 8.5.2.2. Blanket Purchase Order(BPO) 8.5.2.3. Field Purchase Order(FPO) 8.5.3. Finance will administer travel,credit card purchases,utility bills,phone charges,and petty cash in accordance with City policies and statutory requirements. 8.5.4. Authorization levels of purchases$5,000 and under will be determined by the Department Director. Each Department Director shall supply the Chief Financial Officer with departmental policy for individual authorization. Individuals authorized to approve requisitions for purchase orders will only have security set up for their level of approval and with those accounts as authorized. 8.6. Requisitioned Purchase Orders(PO) 8.6.1. Purchase Orders are created from an authorized requisition. Purchase Orders are for all purchases other than those authorized by blanket purchase orders and field purchase orders. All purchases for capital items,contracts that are subject to retainage,and inventory items need to be made with a purchase order. The requisition for purchase is processed and approved before the purchase is physically made,however this may not be the case in emergency purchases. With regular purchase orders,the line item must be added describing the merchandise or services from the authorized requisition. An authorized person creates the purchase orders,which includes: purchase order information,such as purchase order date,type,and buyer name;vendor information, such as vendor number,name,and terms;quantities of items ordered;unit cost of each item ordered;and inventory information for each item on the purchase order. 8.7. Blanket Purchase Order(BPO) 8.7.1. Approval levels established by policy are required as signatures on the Blanket Purchase Order(BPO)request form to authorize creation of a BPO. 29111agc G - 58 Financial Policies (Ry of Port Angel:es 8.7.2. BPOs are used for frequently purchased items from a frequently utilized vendor. BPOs are usually created at the beginning of the year with an annual anticipated dollar amount of expected purchases. Some department heads or directors may indicate the maximum dollar amount of a single purchase to be entered on a BPO. When a purchase exceeds the authorized maximum,a requisition/purchase order will need to be created for that purchase. The BPO request form includes a section to be completed authorizing the increase on a BPO when the initial balance requested is expended. On BPOs,line items are added as the items are received. 8.8. Receipt of Goods 8.8.1. When items are received from a vendor,the receipt is recorded against an open purchase order. Open purchase orders are purchase orders that are not canceled and still have items that are not fully received,invoiced,or both. All items on a purchase order can be received at once or individual items or quantities of an item received separately. The department that created the original purchase order is responsible to receipt all items on the purchase order. 8.9. FPO(Field Purchase Order) 8.9.1. An FPO can be used for smaller purchases that may be under$1,000,such as subscriptions,registrations,and routine budgeted transactions. All items previously posted to an account other than an expense account will be paid using an FPO. FPOs may also be used for larger transactions,insurance payments,debt redemption,other liabilities previously approved,and to request advance payments for legitimate business expenses. Contracts having retainage need to be processed using purchase orders. 8.10. Invoicing 8.10.1. Claims shall be processed for payment by the Finance Department after proper processing and receiving is completed at the department level. Invoices should be sent directly to the Finance Department from the vendor. All invoices should be complete with the following: (1)City purchase order number;(2)complete description ofgoods or service provided;(3)quantity;(4)unit prices and extensions;(5)discount terms;and (6)invoice number. 8.10.2. Adequate documentation will be attached to City payment vouchers to assure that it supports a valid,legally authorized purchase. Payments will be made only on original invoices. Properly prepared and approved requisitions,purchase orders,and receiving reports will be attached when applicable. 8.10.3. All City claims approved by the Departments are certifying that the materials have been furnished,the services rendered or the labor performed,and that the claim is a just,due and unpaid obligation against the City,prior to submitting the claim to the Finance Department for payment. 8.10.4. The department initiating the claim will be responsible for compliance and documentation for bid requirements,prevailing wages,approved change orders,and any additional statutory consideration related to the transaction. 8.11. Check Signing 8.11.1. To be valid,all checks in payment of claims must be signed by both the City Manager and the Chief Financial Officer. ¢PA44c4 0 94C4 8.12. Approval of Payment Claims 30 1 11 a g c G - 59 Financial Policies (Ry of Port Angel:es 8.12.1. It shall be the duty oft he Chief Financial Officer to present PUGh M(41qd d I Odd] n a 2f tl r Q I y trial i,I,a list showing a l l claims paid and the date ofsuch payment to enable the City Council to make inquiry on any item appearing thereon. Upon satisfaction of such inquiry,if any,the City Council shall by motion approve the report of claims paid as a permanent record. (A4 8.13. Contracts 8.13.1. The City Manager or his designee may sign contracts(rf less than$25,000. 8.13.2. 1 ho City Manager or his designee is authorized to enter into lease or rental agreements, provided the agreement does not obligate the City of Port Angeles in excess of$25,000 and the agreement is for a period that does not exceed one year. 8.14. Bidding Requirements 8.14.1. Purchases of supplies,materials and equipment or services other than architectural, engineering and land surveying services over$7,500 but less than$15,000 may be purchased after obtaining three written or telephone quotes. All purchases over $15,000,other than architectural,engineering and land surveying services,are required to go through a formal bidding process. 8.15. Lowest Responsible Bidder (PA44c 47967960) 8.15.1. Before award of a public works contract,a bidder must meet the following responsibility criteria to be considered a responsible bidder and qualified to be awarded a public works project. The bidder must: 8.15.1.1. At the time of bid submittal,have a certificate of registration in compliance with chapter 18.27 RCW; 8.15.1.2. Have a current Washington state unified business identifier number; 8.15.1.3. If applicable,have industrial insurance coverage for the bidder's employees working in Washington as required in Title 51 RCW;and employment security department number as required in Title 50 RCW;and a state excise tax registration number as required in Title 82 RCW;and 8.15.1.4. Not be disqualified from bidding on any public works contract under RCW 39.12.065(3). 8.15.2. Supplemental criteria: In addition to the bidder responsibility criteria in 8.14.1 above, when the City receives bids or quotes and it is necessary to determine the lowest responsible bidder,the following shall apply: 8.15.2.1. For a contract for purchase of supplies,material or equipment,the City may take into consideration the quality of the articles proposed to be supplied, their conformity with the specifications,and the times of delivery. 8.15.2.2. In determining"lowest responsible bidder",in addition to price,the following elements shall be given consideration: 8.15.2.3. The ability,capacity,and skill of the bidder to perform the contract; 8.15.2.4. The reputation,ability,experience,and efficiency of the bidder; 8.15.2.5. Whether the bidder can perform the contract within the time specified; 8.15.2.6. The quality of performance of previous contracts; 31 1 11 a g c G - 60 Financial Policies (Ay of Port Angel:es 8.15.2.7. The previous and existing compliance by the bidder with laws relating to the contract; 8.15.2.8. Tax revenue that the City would receive from purchasing the supplies, materials,or equipment from a supplier located within the City's boundaries, so that the purchase contract would be awarded to the lowest bidder after such tax revenue has been considered. The tax revenues that the City may consider include sales taxes that the City imposes upon the sale of such supplies,materials,or equipment,from the supplier to the City,provided that if the City considers such tax revenues that it would receive from the imposition of taxes upon a supplier located within its boundaries,the City shall also consider tax revenues it would receive from taxes it imposes upon a supplier located outside its boundaries; 8.15.2.9. If products are available that meet the contract specifications and requirements and that are made from recycled materials or may be recycled, whether the products are specified in the bid are made from recycled materials or may be recycled or reused;and 8.15.2.10. Other criteria applicable to the particular contract and provided in the invitation to bid. 8.15.3. Supplemental criteria for determining bidder responsibility,including the basis for evaluation and the deadline for appealing a determination that a bidder is not responsible,must be provided in the invitation to bid or bidding documents. 8.15.4. In a timely manner before the bid submittal deadline,a potential bidder may request that the City modify the supplemental criteria. The City must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. Ifthe evaluation results in a change of the criteria,the City must issue an addendum to the bidding documents identifying the new criteria. 8.15.5. Ifthe bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents,the City may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bid not responsive. 8.15.6. Ifthe City determines a bidder to be not responsible,the City must provide,in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the City. The City must consider the additional information before issuing its final determination.If the final determination affirms that the bidder is not responsible,the City may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination. 8.15.7. Subcontractors. A public works contractor must verify responsibility criteria for each first tier subcontractor,and a subcontractor of any tier that hires other subcontractors must verify responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor,at the time of subcontract execution,meets the responsibility criteria listed in subsection A.and possess an electrical contractor license, if required by chapter 19.28 RCW,or an elevator contractor license,if required by chapter 70.87 RCW.This verification requirement,as well as the responsibility criteria, must be included in every public works contract and subcontract of every tier. 32 1 11 a g c G - 61 Financial Policies (Ry of Port Angel:es 8.15.8. The Director of Public Works and Utilities shall apply the criteria established in this section and determine whether a bidder is responsible. An appeal shall be heard and determined by the City Manager,whose decision shall be final. 8.16. Bid Inspection 8.16.1. Immediately after the award is made,the bid quotations obtained shall be recorded, open to public inspection,and available by written,telephonic,or electronic request. 8.17. Authority to Enter into Contracts,Leases or Rental Agreements 8.17.1. The City Manager or his designee is hereby authorized to enter into contracts and leases or rental agreements provided that the following conditions are met: 8.17.1.1. The contract does not obligate the City to expend in excess of$25,000. 8.17.1.2. The particular expenditure of City funds has been approved in the City Budget as approved by the City Council. 8.17.1.3. The lease or rental agreement is for a period that does not exceed one year and involves a total rental amount or value that does not exceed$25,000. As deemed appropriate by the City Manager,the City Council's Real Estate Committee may be consulted prior to executing any such lease or rental agreement. 8.17.1.4. The City Manager or his designee shall notify the Council in writing of contracts entered into pursuant to this section. 8.18. Small Purchase Contracts 8.18.1. Whenever the reasonably anticipated purchase price of supplies,material and equipment,except for public work or improvement,is more than$7,500 but less than $15,000.00,advertisement and formal sealed bidding for t hr oo t hr?purchase may be dispensed with if the uniform procedure provided in RCW 39.04.190 and in this section is followed. 8.18.2. At least twice per year,the City Clerk shall publish in a newspaper of general circulation within the City a notice stating the existence of vendor lists and soliciting the names of vendors for the lists. 8.18.3. Each City department that desires to award contracts for the purchase of supplies, material or equipment pursuant to this process shall do the following: 8.18.3.1. Obtain at least three written or telephone quotations from different vendors of the supplies,material or equipment to be purchased. 8.18.3.2. Transmit the quotes to the City Manager or designee,accompanied by a recommendation for award of the purchase contract to one of the vendors, who shall be the lowest responsible bidder as defined in RCW 43.19.1911 or elsewhere in these policies. 8.18.3.3. If less than three quotes are obtainable due to factors beyond the control of the department,the recommendation to the City Manager or designee shall be accompanied by an explanation of the reasons for the lower number of quotes. 33 1 11 a g c G - 62 Financial Policies (Ry of Port Angel:es 8.19. MRSC Rosters 8.19.1. The City has contracted with and hereby is authorized to use the Municipal Research and Services Center of Washington(MRSC)for the City use of statewide electronic databases for small works rosters,and consulting services developed and maintained by MRSC. In addition,paper and/or electronic rosters may be kept on file by appropriate City Departments. 8.20. Small Works Rosters 8.20.1. The following small works roster procedures are established for use by the City pursuant to RCW 39.04.155: 8.20.1.1. Cost. The City need not comply with formal sealed bidding procedures for the construction,building,renovation,remodeling,alteration,repair,or improvement of real property where the estimated cost does not exceed $300,000,which includes the costs of labor,material,equipment and sales and/or use taxes as applicable. Instead,the City may use the small works roster procedure for public works projects as set forth herein. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process. 8.20.1.2. Publication. At least once a year,on behalf of the City,MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice ofthe existence of the roster or rosters and solicit the names of contractors for such roster or rosters.Responsible contractors shall be added to appropriate MRSC roster or rosters at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a small works roster. 8.20.1.3. Telephone or written quotations. The City shall obtain telephone,written or electronic quotations for public works contracts from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to a contractor who meets the mandatory bidder responsibility criteria in Section 8.14 of this policies. 8.20.2. A contract awarded from a small works roster need not be advertised. 8.20.3. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However,detailed plans and specifications need not be included in the invitation. 8.20.4. Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative,quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted,in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster,,,, "Equitably distribute" means that the City may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services. 8.20.5. If the estimated cost of the work is from$150,000 to$300,000,the City may choose to solicit bids from less than all appropriate contractors on the appropriate small works roster but must notify the remaining contractors on the appropriate small works roster 34 1 11 a g c G - 63 Financial Policies (Ry of Port Angel:es that quotations on the work are being sought.The City has the sole option of determining whether this notice to the remaining contractors is made by: 8.20.5.1. Publishing notice in a legal newspaper in general circulation in the area where the work is to be done; 8.20.5.2. Mailing a notice to these contractors;or 8.20.5.3. Sending a notice to these contractors by facsimile or email. 8.20.6. At the time bids are solicited,the City representative shall not inform a contractor of the terms or amount of any other contractor's bid for the same project. 8.20.7. A written record shall be made by the City representative of each contractor's bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded,open to public inspection,and available by telephone inquiry. 8.20.8. Limited public works process. If a work,construction,alteration,repair,or improvement project is estimated to cost less than$35,000,the City may award such a contract using the limited public works process provided under RCW 39.04.155(3). For a limited public works project,the City will solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 39.04.010. After an award is made,the quotations shall be open to public inspection and available by electronic request. 8.20.9. For limited public works projects,the City may waive the payment and performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW,thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors,materialmen,suppliers,and taxes imposed under Title 82 RCW that may be due from the contractor for the limited public works project. However,the City shall have the right of recovery against the contractor for any payments made on the contractor's behalf. 8.20.10.The City shall maintain a list of the contractors contacted and the contracts awarded during the previous 24 months under the limited public works process,including the name of the contractor,the contractor's registration number,the amount of the contract,a brief description of the type of work performed,and the date the contract was awarded. 8.20.11.Award.All of the telephone bids or quotations shall be collected and presented at the same time to the Council for consideration,determination of the lowest responsible bidder,and award of the contract. 8.21. Consulting Services Rosters 8.21.1. Consulting services. Consulting services are professional services that have a primarily intellectual output or product and include architectural and engineering services as defined in RCW 39.80.020. 8.21.2. Publication. At least once a year,on behalf of the City,MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the consulting services roster or rosters and solicit statements of qualifications from firms providing consulting services. Such advertisements will include information on how to find the address and telephone number of a representative of the City who can provide further details as to the City's projects needs for consulting services. Firms or persons IL35111agc G - 64 Financial Policies (Ry of Port Angel:es providing consulting services shall be added to appropriate MRSC roster or rosters at anytime that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a consulting services roster. 8.21.3. Professional architectural and engineering services. The MRSC Rosters will distinguish between professional architectural and engineering services as defined in RCW 39.80.020 and other consulting services and will announce generally to the public the City's projected requirements for any category or type of professional or other consulting services. The City reserves the right to publish an announcement on each occasion when professional services or other consulting services are required by the agency and to use paper and/or other electronic rosters that may be kept on file by appropriate City departments. 8.22. Public inspection of purchase,small works roster,or limited public works awards 8.22.1. Each department that makes an award for a purchase contract under the informal bidding process in section 8.14 of this chapter shall provide the City Clerk with the name of the contractor or vendor awarded the contract,the amount of the contract,a brief description of the type of work performed or items purchased under the contract,and the date it was awarded. 8.22.2. The City Clerk shall post a list of the contracts awarded under section 8.17 of this chapter at least once every two months.The lists shall contain the name of the contractor or vendor awarded the contract,the amount of the contract,a brief description of the type of work performed or items purchased under the contract,and the date the contract was awarded.The lists shall also state the location where the bid quotations for these contracts are available for public inspection.The quotations shall be available by written,telephonic,or electronic request. 8.22.3. Approval for change orders and amendments shall be granted in writing and signed by the officials noted below: GENERAL PURCHASING Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department —authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00--$24,999.99 • City Manager—authorizing official Department —requesting • s-,I;InrrLrS,,,,,, official • Chief Financial Officer—as to availability of funds&compliance with policy requirements Greater than$25,000.00 • City Council approval required • City Manager—authorizing official • Department d pwr!;)nrrLni requesting official • Chief Financial Officer—as to availability of 36111a G - 65 Financial Policies (Ay of Ilo tAi fides funds&compliance with policy requirements CONSULTANT CONTRACTS Note: Funding of any change orders must have been WITH ORIGINAL AWARD included in the original budget authorization approved GREATER THAN$25,000 by the City Council. If additional funds beyond the BUT LESS THAN$100,000 original budget are required,the City Council must approve the change order regardless of the amount. Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department d P, -f,)nrrlr5l,,,authorizing official • Chief Financial Officer-as to availability of funds&compliance with policy requirements $15,000.00-$24,999.99 • City Manager-authorizing official • Department s-,I)ii rrLrS -requesting official • Chief Financial Officer-as to availability of funds&compliance with policy requirements rtni 61qRn-$25,000.00 • City Council approval required Yi rFl i„ • City Manager-authorizing official • Department s-,I)ii rrLrS -requesting official • Chief Financial Officer-as to availability of funds&compliance with policy requirements CONTRACTS FOR Note: Funding of any change orders must have been ARCHITECTURAL, included in the original budget authorization approved ENGINEERING OR LAND by the City Council. If additional funds beyond the SURVEYING WITH ORIGINAL original budget are required,the City Council must AWARD GREATER THAN approve the change order regardless of the amount. $25,000 BUT LESS THAN $100,000 Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department 4p w, ,IHiirrlri,,-authorizing official • Chief Financial Officer-as to availability of funds&compliance with policy requirements $15,000.00-$24,999.99 • City Manager-authorizing official • Department4PftF )ii rrLr,i;,,requesting official • Chief Financial Officer-as to availability of funds&compliance with policy requirements IL37111agc G - 66 Financial Policies (Ay of IlortAngdes �moaLpi: Lhrn$ • City Council approval required .. 25,000 r5i,,, • City Manager—authorizing official • Department d+^,r..,l,;;;r,i,!r;.rlr,;5„i;;;—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements PUBLIC WORKS Note: Funding of any change orders must have been CONSTRUCTION included in the original budget authorization approved CONTRACTS WITH by the City Council. If additional funds beyond the ORIGINAL AWARD original budget are required,the City Council must GREATER THAN$25,000 approve the change order regardless of the amount. BUT LESS THAN$100,000 Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department 4p w, ,IHiirrlri,,—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00—$24,999.99 • City Manager—authorizing official or 25%of the original • Department d P, -f,)n rrlr5l,,,requesting contract award, official whichever is less • Chief Financial Officer—as to availability of funds&compliance with policy requirements r �MORtPl: Lhrn..$25,000 r5i,, • City Council approval required , • City Manager—authorizing official • Department s-,I)ii rrLrS —requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements Note: The City Council may grant specific additional authority to the City Manager as part of the original contract award approved by the City Council. PUBLIC WORKS Note: Funding of any change orders must have been CONSTRUCTION included in the original budget authorization approved CONTRACTS WITH by the City Council. If additional funds beyond the ORIGINAL AWARD original budget are required,the City Council must GREATER THAN$100,000 approve the change order regardless of the amount. Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department 4p w, ,IHiirrlri,,—authorizing official • Chief Financial Officer—as to availability of 38111agc G - 67 Financial Policies (Ry of Port.Angel''et funds&compliance with policy requirements 25%of the original • City Manager—authorizing official contract authorization not • Department —requesting to exceed$99,999.99, official whichever is less • Chief Financial Officer—as to availability of funds&compliance with policy requirements Greater than 25%of the • City Council approval required original contract • City Manager—authorizing official authorization or$100,000 • Department 4p w, ,I,)ii rrlri,,,requesting or more official • Chief Financial Officer—as to availability of funds&compliance with policy requirements Note: The City Council may grant specific additional authority to the City Manager as part of the original contract award approved by the City Council. 8.22.4. For all contracts,service agreements and professional service agreements,the City Manager or designee may authorize and approve change orders or amendments that only extend the time for performance or only change the procedure for administering the contract or agreement where there is no substantial change in scope or increase in the cost of the contract or agreement. A.pjl ue%W fdu°e ire the.Gky At%@Fney eirri Gh llge 9114ewE e`(4kd in 4,6: k4lq ,.P4w46b(41,o)�IgaP 4d�o u1ad1qskPi,A!G1q f144M hPt'etIVAtdrPROYsuk.IR 1Igc cd UR; ,0(414t Fe 8,24.,„8,1,3 Change orders on construction contracts and amendments to professional service agreements 4wP4 M.~t. w,,M,Upon subsequent approval by the City Council of a single or collective series of change orders requiring Council approval,the approval threshold shall be re-set based on the most recent Council—approved contract amount as the starting point. When approval occurs by the City Manager or respective department head for change orders,or professional services agreement amendments;according to the conditions stated above,they shall notify the City Council of the change order or amendment in the next bi--monthly contract status report submitted to City Council. 8,22,8.24. Definition of credit card ,2.” ,A wS./1.M.As used in this chapter,"credit card"means a card or device issued under an arrangement pursuant to which the issuer gives to a cardholder the privilege of obtaining credit from the issuer. 9,26,�8,25. Issuance,use and control of credit cards 2 ? The City Council hereby adopts the following system for the issuance,use and control of credit cards by City officials and employees: .............The Finance Department shall implement the following system for the distribution,authorization,control,credit limits and payment of bills related to the use of credit cards by City officials and employees: 39111age G - 68 Financial Policies (Ry of Port Angel:es .9.9.N,. r.M.M M. Distribution. Credit cards will be distributed to those City officials and employees who have job responsibilities which would be facilitated by the use of a credit card and the credit card use would benefit the City. This shall include the City Council,City Manager,Department Heads,Division Managers,and other officials and employees as determined by the City Manager. 9.9. r.M.M,.?. Authorization and control. The Finance Department shall develop the implementation guidelines and accounting controls to ensure the proper usage of credit cards and credit card funds. F'.P .9.9.+. r.M.M3. Credit limits. The Finance Department shall set credit limits on each credit card issued. The credit limit shall not exceed$2,500 without written approval of the City Manager. 9.flAM 8Zr.M.M.,4M Payment of bills. The Finance Department shall establish and implement a written procedure for the payment of all credit card bills. 9.9. r.M.M r. Unauthorized charges. No employee shall use the City-issued credit card for non-City business use. Any employee who violates this policy by using a City--issued credit card for non-City business shall be subject to disciplinary action and shall be billed for all charges on the credit card. The City Manager or his/her designee is authorized and directed to make payroll deductions to recover any unauthorized charges. 9.9.t. r.M.M '. Cash advances. Cash advances on credit cards are prohibited. Q, . The Finance Department is authorized to adopt any additional procedures or policies necessary to implement the provisions of this section. 40 1 11 a g c G - 69 Financial Policies (Ry of Port Angel:es 9. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS 9.1. Scope: 9.1.1. This Post Issuance Compliance Policy addresses the City of Port Angeles,Washington's (the"City")compliance with federal tax,federal securities and state law requirements and contractual obligations applicable to the City's tax-advantaged governmental bond issues. The Post Issuance Compliance Policy applies generally to all of the City's tax- exempt governmental bonds,and other bonds subject to comparable requirements, such as taxable direct-pay bonds. As used in this Post Issuance Compliance Policy, references to"bonds"include bonds,lines of credit,bond anticipation notes,and equipment and other financing leases. 9.2. Purpose: 9.2.1. This Post Issuance Compliance Policy is intended to improve the City's ability to: 9.2.1.1. Prevent violations in bond requirements from occurring in the first place, 9.2.1.2. Timely identify potential violations,and 9.2.1.3. Correct identified violations through appropriate remedial steps. 9.3. Schedule of Review: 9.3.1. The Post Issuance Compliance Policy is to be reviewed at least annually and upon each issuance of new bonds,including refunding bonds. In connection with this periodic review,the Chief Financial Officer will consider whether the Post Issuance Compliance Policy should be amended or supplemented: 9.3.1.1. To address any particular requirements associated with the new bond issue, or 9.3.1.2. To reflect general changes in requirements since the prior bond issue. 9.4. Requirements at Bond Closing: 9.4.1. Numerous federal tax,federal securities,and state law requirements must be met in connection with a bond issue. In some circumstances(e.g.,revenue bonds)rate and other covenant requirements will also need to be satisfied. These requirements are addressed in the bond transcript completed at bond closing,and confirmed in certain respects by the legal opinions included in the bond transcript. 9.5. Requirements after Bond Closing: 9.5.1. Other federal tax,federal securities law,,,and state law requirements and contractual obligations require on-going monitoring after the issuance of the bonds. 9.6. Officials or Employees Responsible for Review: 9.6.1. The following officers and employees of the City are identified as the responsible persons for reviewing compliance with the City's post-issuance obligations. Each responsible individual is to institute a calendaring system to track compliance with tasks in a timely manner. 9.6.1.1. Federal tax requirements,including arbitrage,use of proceeds,use of facilities and IRS filings: 9.6.1.2. Arbitrage,IRS Filings: Chief Financial Officer or as designated by Chief Financial Officer 41111agc G - 70 Financial Policies (Ry of Port Angel:es 9.6.1.3. Use of Proceeds: Chief Financial Officer or as designated by Chief Financial Officer 9.6.1.4. Use of Facilities: Department Director as designated by City Manager 9.6.2. Continuing disclosure requirements: 9.6.2.1. Annual Filing: Chief Financial Officer or as designated in writing by the Chief Financial Officer 9.6.2.2. Material Event Notices: Chief Financial Officer or as designated by Chief Financial Officer 9.6.2.3. Prior to filing each annual filing or material event notice,the Chief Financial Officer is to circulate the draft filing or notice to bond counsel or to the City Attorney for review. 9.6.3. The Chief Financial Officer is responsible for reviewing the other requirements under this policy. 9.6.4. The responsible persons identified above may need to confer,from time to time,with the City's bond counsel,and/or financial advisor(if any);to confirm the applicability and scope of the requirements outlined in this policy. For reference,the contact information for these advisors is provided below: 9.6.4.1. Pacifica Law Group LLP,as bond counsel 9.6.4.1.1. Deanna Gregory at 206-245-1716 or Deanna.gregory @pacificalawgroup.com,or 9.6.4.1.2. Stacey Crawshaw-Lewis at 206-245-1714 or Stacey.Lewis@pacificalawgroup.com 9.6.4.1.3. Edward McCullough at 206-245-1727 or Edward.mccullough @pacificalawgroup.com 9.6.5. Training of the responsible official/employee. The City provides opportunities for training to the responsible individuals,specifically including the following training opportunities: 9.6.5.1. At or after bond closing,a conference call or meeting with bond counsel to review the requirements applicable to a new bond issue. 9.6.5.2. Identify other training activities,if applicable—such as participation in in- house training sessions,CPE seminars,or seminars conducted by professional organizations (e.g.,GFOA,WFOA,WMTA) 9.6.6. Records to be Maintained. The following documents are maintained in connection with each bond issue. The goal is to retain adequate records to substantiate compliance with federal tax,securities law,state law and other contractual requirements applicable to the City's bonds. Generally,records should be maintained for the term of the bonds (plus any refunding)plus four years. Unless otherwise specified,the following records are to be maintained in the office of the Chief Financial Officer. 9.6.6.1. Complete bond transcript(provided by bond counsel)in CD or hard copy. 9.6.6.2. Records of investment of bond proceeds in a format showing the date and amount of each investment,its interest rate and/or yield,the date any 42 1 11 a g v G - 71 Financial Policies (Ay of Port Angel:es earnings are received and the amount earned, and the date each investment matures and if sold prior to maturity,the sale date and sale price. 9.6.6.3. Records of expenditure of bond proceeds in a format showing the amount, timing,and the type of expenditure. 9.6.6.4. Records of invoices or requisitions,together with supporting documentation showing payee,payment amount,and type of expenditure,particularly for projects involving multiple sources of funds. 9.6.6.5. Records necessary to document the allocation of bond proceeds and other sources of funds to particular projects or portions of projects. 9.6.6.6. Records documenting the final allocation of bond proceeds to projects, including any reallocations of bond proceeds,in a format showing the timing and substance of the reallocation,if applicable. 9.6.6.7. Records demonstrating compliance with arbitrage and rebate requirements, including arbitrage calculations,documentation of spending exceptions to rebate,rebate reports and IRS filings and payments. 9.6.6.8. Copies of contracts relating to the use of the bond-financed facility, leases,concession agreements,management agreements and other agreements that give usage rights or legal entitlements with respect to the facility to nongovernmental persons(e.g.,advertising displays,cell tower leases,and naming rights agreements). 9.6.6.9. Copies of contracts relating to ongoing compliance with respect to the bonds. 9.6.6.10. Copies of any filings or correspondence with the IRS,the SEC or other regulatory body. 9.7. Investment of Bond Proceeds: 9.7.1. In general,bond proceeds and certain other funds can only be invested at a rate that exceeds the yield on the bonds under limited circumstances. Furthermore,amounts earned by investing above the bond yield must be rebated to the IRS,unless the City qualifies as a small issuer or a spending exception is met. The arbitrage and rebate requirements for each bond issue are detailed in the federal tax certificate. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)will monitor the investment and expenditure of the funds and accounts listed below. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)determines whether the bond issue meets the requirement for one of the expenditure exceptions to arbitrage rebate. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)in consultation with bond counsel will determine whether a rebate calculation is necessary and,if so,will perform the calculation or engage a rebate consultant. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)will arrange for the payment of any required rebate to the IRS together with the appropriate IRS form on the dates described below. 9.7.1.1. Funds to Monitor. 9.7.1.1.1. Bond or debt service funds/accounts 43111agc G - 72 Financial Policies (Ry of Port Angel:es 9.7.1.1.2. Project or construction funds/accounts 9.7.1.1.3. Debt service reserve funds/accounts 9.7.1.1.4. Other accounts with bond proceeds or amounts pledged to pay bonds 9.7.1.2. Arbitrage Reports;Rebate May Be Due. A.A.I.I.A I.I.L I,., During construction,monitor expenditures to Formatted:Font:(Default)Calibri confirm satisfaction of expected exception to rebate(such as six Formatted:Indent:Left: 2.13",Hanging: 9 9: month exception,18 month exception,24 month exception) 0.75',Outline numbered+Level:5+ Numbering Style:1,2,3,...+Start at:1+ A.A.I.I.P`J.A. . The first rebate payment is due five years after Alignment:Left+Aligned at: 4.13"+Indent date of issue plus 60 days at: 4.68" A.A.I.I.w9J.1.2.3. Rebate is due every succeeding five years;if there are unspent gross proceeds of the bonds Aw9J.A.2.4. rebate payment is due 60 days after early redemption or retirement of the bonds 9.7.1.3. Limitations on Type of Investments. Bond proceeds must be invested as permitted under state law. In addition,the bond ordinance or any bond insurance agreement may further limit the permitted investments. To monitor compliance with these investment restrictions,the City invests bond proceeds in 1,It,rpState Local Government Investment Pool as well as other investments authorized by the City's Investment Policy and Washington State law. 9.7.1.4. Use of Bond Proceeds During the Construction Period. 9.7.1.4.1. Monitoring the expenditure of bond proceeds is necessary to assure that the required amount of bond proceeds are expended for capital expenditures and that not more than 10% of the bond proceeds are expended for projects that will be used for in a private trade or business(including by the federal government and nonprofit entities). 9.7.1.5. The Chief Financial Officer is responsible for reviewing the transcript for the bonds,and in particular,the authorizing documents and the federal tax certificate,as well as invoices and other expenditure records to monitor that the bond proceeds are spent on authorized project costs. 9.7.1.6. If,at the completion of the project,there are unspent bond proceeds,the Chief Financial Officer,conferring with bond counsel,will direct application of the excess proceeds for permitted uses under federal tax law,state law, and bond authorization documents. 9.7.1.7. If the project involves bond proceeds and other sources of funds and included both governmental and nongovernmental use of the financed facilities, Chief Financial Officer will undertake a final reconciliation of bond proceeds expenditures with project costs no later than 18 months after the later of the date of expenditure or the date that the project is placed in service(but in no event more than five years after the date of issue). 44111agc G - 73 Financial Policies (Ry of Port Angel:es 9.8. Use of Bond-Financed Facilities: 9.8.1. Monitoring(and limiting)any private use of the bond-financed facility is important to maintaining the federal tax treatment of governmental bonds. In general,no more than 10%of the bond-financed facility can be used in a private trade or business(including by the federal government and nonprofit entities). Private use can arise through any of the following arrangements,either directly or indirectly. 9.8.2. Types of Private Use 9.8.2.1. Selling all or a portion of the facility 9.8.2.2. Leasing all or a portion of the facility 9.8.2.3. Entering into a management contract for the facility(except for qualified management contracts under IRS Rev.Proc.97-13) 9.8.2.4. Use of all or a portion of the facility for research purposes under a research contract(except for qualified research contracts under IRS Rev.Proc.97-14) 9.8.2.5. Entering into contracts giving"special legal entitlement"to the facility(for example,selling advertising space or naming rights) 9.8.3. Procedures for monitoring private use;procedures reasonably expected to timely identify noncompliance. 9.8.3.1. All leases and other contracts involving bond-financed property will be sent prior to execution to the Chief Financial Officer for review. 9.8.4. Procedures ensuring that the City will take steps to timely correct noncompliance. 9.8.4.1. If the City takes official action to sell,lease or otherwise change the use of bond-financed facilities to private use,action should be taken under Treas. Reg.§1.141-12 within 90 days to apply net proceeds of the sale or lease of the facility to other qualifying capital expenditures,or to redeem or defease bonds. Upon a determination that there has been or could be a change in use of a bond-financed facility under the monitoring procedures described above,the Chief Financial Officer shall consult with bond counsel and apply net proceeds of the change in use as required. 9.9. Continuing Disclosure: 9.9.1. The City is required to make annual filings with the Municipal Securities Rulemaking Board("MSRB")as described in the continuing disclosure undertaking for each bond issue(which may include tax-exempt or taxable bonds),and to file notice of certain material events. 9.9.1.1. Submissions will be made in electronic form through the MSRB's web-based system known as Electronic Municipal Market Access("EMMA"),currently available at http://www.emma.msrb.org. Submissions will be made in word- searchable PDF. 9.9.1.2. Annual filings to be made: 9.9.1.2.1. Financial information and operating data about the City included in the Official Statement for the bonds 9.9.1.2.2. Change in fiscal year;other information described in the continuing disclosure undertaking 45111agv G - 74 Financial Policies (Ry of Port Angel:es 9.9.1.2.3. Audited financial statements 9.9.1.2.4. These reports must be filed no later than nine months(e.g. September 30)for the majority of the City's bonds,and seven months(e.g.July 31)with respect to one issue,after the end of the City's fiscal year(the City's fiscal year currently ends December 31) 9.10. Material event notices: 9.10.1. The City is required to provide or cause to be provided to the MSRB,in a timely manner, notice of certain events with respect to the bonds. Amendments to SEC Rule 15c2-12 (the"Rule")in 2010 expanded the list of events requiring disclosure and added a 10-day compliance period for undertakings effective after December 1,2010. 9.10.2. Generally,if any of the following events occur,the City shall provide,or cause to be provided,to the MSRB,in a timely manner not in excess of ten business days after the occurrence of the event,notice of the occurrence of the any of the following events with respect to the bonds: 9.10.2.1. Principal and interest payment delinquencies 9.10.2.2. Non-payment related defaults,if material 9.10.2.3. Unscheduled draws on debt service reserves reflecting financial difficulties 9.10.2.4. Unscheduled draws on credit enhancements reflecting financial difficulties 9.10.2.5. Substitution of credit or liquidity providers,or their failure to perform 9.10.2.6. Adverse tax opinions,the issuance by the IRS of proposed or final determinations of taxability,Notices of Proposed Issue(IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the bonds,or other material events affecting the tax status of the bonds 9.10.2.7. Modifications to the rights of bondholders,if material 9.10.2.8. Bond calls,if material,and tender offers 9.10.2.9. Defeasances 9.10.2.10. Release,substitution,or sale of property securing repayment of the Bonds,if material 9.10.2.11. Rating changes(both upgrades and downgrades) 9.10.2.12. Bankruptcy,insolvency,receivership or similar event of the City 9.10.2.13. The consummation of a merger,consolidation,or acquisition involving the City or the sale of all or substantially all of the assets of the City,other than in the ordinary course of business,the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions,other than pursuant to its terms,if material 9.10.2.14. Appointment of a successor or additional trustee or the change of name of a trustee,if material 9.10.3. Procedure for ensuring that notice of the above events is provided to the responsible individual(s)identified above: Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer) 46111agc G - 75 Financial Policies (Ry of Port Angeles 9.10.4. Periodic check of information regarding bonds on EMMA. Periodically and at least prior to each new bond issue,the City will search EMMA for its continuing disclosure filings to confirm proper filings have been made. 9.11. Compliance with Bond Covenants: 9.11.1. Particularly for revenue bond issues,the City has made rate and other covenants for the benefit of bond owners. The City monitors compliance with these bond covenants on an annual basis,as part of its annual audit process. These covenants are summarized below: Covenant Requirement Document;Section Timing Rates Insurance Sale or disposition of property Debt Service Reserve Fund Balance 9.11.2. Other Reports. Under the terms of bond insurance policies,letter of credit reimbursement agreements,debt service reserve surety agreements,financing agreements,loan agreements,and remarketing agreements,the City may be required to send copies of budget,disclosure and other documents as well as notice of the issuance of additional bonds,events of default,redemptions or defeasances,or amendments to the bond documents. The following entities are required to receive copies of the following documents or notices. Entity Type Name/Contact Document;Section Requirement Timing Bond Insurer Letter of Credit Bank Underwriter/Remarketing Agent Bank 47111agc G - 76 l i 4 uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuui Adopted by dae Part l a ...... s' es CRY ou nIfJd ..UHF Financial Policies C�ty of Port Angdes TABLE OF CONTENTS 1. FINANCIAL POLICIES..................................................................................................................4 I.I. Goals&Objectives:........................................................................................................................................................................4 1.2. Fiduciary Responsibility:................................................................................................................................................................4 1.3. Annual Review and Recommendations for Changes to Financial Policies:...................................................................................4 2. LONG-RANGE FINANCIAL POLICIES..........................................................................................5 2.1. Resolution of Conflict between Policies:.......................................................................................................................................5 2.2. Ability to Pay:.................................................................................................................................................................................5 2.3. Use of Reserves:.............................................................................................................................................................................5 2.4. Unassigned Fund Balance:.............................................................................................................................................................5 2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund:...................................................................................................6 2.6. Issuance of New Debt and Ability to Pay:......................................................................................................................................6 2.7. Considerations for Debt Financing:................................................................................................................................................6 2.8. Disposition of Unused Property.....................................................................................................................................................6 2.9. Use of Highly Volatile Funding Sources:........................................................................................................................................7 2.10. Potential for Segmenting Public Works Projects:..........................................................................................................................7 2.11. Capital Funding Priorities:..............................................................................................................................................................7 2.12. Use of One-time Revenues:...........................................................................................................................................................7 2.13. Property Tax and Future Budgets:.................................................................................................................................................7 2.14. Use of Banked Property Tax Capacity:...........................................................................................................................................8 2.15. Utility Excise Tax Rates:.................................................................................................................................................................8 2.16. Setting of Fees and Charges for Building Permits:.........................................................................................................................8 2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services:...........................................................................8 2.18. Utility Rate Design:........................................................................................................................................................................8 2.19. Economic Development Fund:.......................................................................................................................................................9 2.20. Implementation of Utility Rate Increases:.....................................................................................................................................9 2.21. Annexation and Cost of Service Analysis:......................................................................................................................................9 2.22. Employee Salaries and Benefits:....................................................................................................................................................9 2.23. Employee Contributions for Health Insurance:.............................................................................................................................9 2.24. Payments by the City to Vendors and Employees:......................................................................................................................10 3. OPERATING POLICIES..............................................................................................................11 3.1. Goals.............................................................................................................................................................................................11 3.2. Revenue Policies..........................................................................................................................................................................11 3.3. Expenditure Policies.....................................................................................................................................................................12 3.4. Capital Improvement Policies......................................................................................................................................................13 3.5. Reserve Fund Policies...................................................................................................................................................................14 4. ACCOUNTING &REPORTING POLICIES...................................................................................17 4.1. Accounting Requirements:...........................................................................................................................................................17 4.2. BARS—Budgeting,Accounting and Reporting System:...............................................................................................................17 4.3. Requirements of the Finance Department:.................................................................................................................................17 4.4. External Auditing Requirement:..................................................................................................................................................17 5. BUDGET POLICIES....................................................................................................................18 5.1. Primary Budget Responsibility.....................................................................................................................................................18 5.2. Operating Budget.........................................................................................................................................................................18 5.3. Budgetary Control........................................................................................................................................................................19 6. DEBT MANAGEMENT POLICIES ..............................................................................................20 6.1. Goals.............................................................................................................................................................................................20 6.2. Short-Term Debt..........................................................................................................................................................................20 6.3. Long-Term Debt............................................................................................................................................................................20 6.4. General Obligation Bond Policy...................................................................................................................................................21 7. INVESTMENT POLICIES............................................................................................................22 7.1. Goals.............................................................................................................................................................................................22 7.2. Objectives.....................................................................................................................................................................................22 8. PURCHASING POLICIES...........................................................................................................27 2 1 P Financial Policies C�ty of Port Angdes 8.1. Goal..............................................................................................................................................................................................27 8.2. Right to Establish,Amend or Repeal...............................................................................................Error!Bookmark not defined. 8.3. Financial Information Provided to Council..................................................................................................................................27 8.4. Purchasing Policy Definitions.......................................................................................................................................................28 8.5. Policy Requirements....................................................................................................................................................................29 8.6. Requisitioned Purchase Orders(PO)............................................................................................................................................29 8.7. Blanket Purchase Order(BPO).....................................................................................................................................................29 8.8. Receipt of Goods..........................................................................................................................................................................30 8.9. FPO(Field Purchase Order)..........................................................................................................................................................30 8.10. Invoicing.......................................................................................................................................................................................30 8.11. Check Signing...............................................................................................................................................................................30 8.12. Approval of Payment Claims........................................................................................................................................................30 8.13. Contracts......................................................................................................................................................................................31 8.14. Bidding Requirements..................................................................................................................................................................31 8.15. Lowest Responsible Bidder (PAMC 3.05.050).............................................................................................................................31 8.16. Bid Inspection (PAMC 3.05.055)..................................................................................................................................................33 8.17. Authority to Enter into Contracts,Leases or Rental Agreements (PAMC 3.05.060)...................................................................33 8.18. Small Purchase Contracts (PAMC 3.05.070)................................................................................................................................33 8.19. MRSC Rosters (PAMC3.05.080)..................................................................................................................................................34 8.20. Small Works Rosters (PAMC 3.05.085)........................................................................................................................................34 8.21. Consulting Services Rosters (PAMC 3.05.090).............................................................................................................................35 8.22. Public inspection of purchase,small works roster,or limited public works awards (PAMC 3.05.100).....................................36 8.23. Approval from the City Attorney on Change Orders:......................................................................Error!Bookmark not defined. 8.24. Change orders on construction contracts and amendments to professional service agreements (PAMC 3.05.110)................39 8.25. Definition of credit card (PAMC 3.05.120)..................................................................................................................................39 8.26. Issuance,use and control of credit cards (PAMC 3.05.130)........................................................................................................39 9. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS..............................................41 9.1. Scope:...........................................................................................................................................................................................41 9.2. Purpose:.......................................................................................................................................................................................41 9.3. Schedule of Review:.....................................................................................................................................................................41 9.4. Requirements at Bond Closing:....................................................................................................................................................41 9.5. Requirements after Bond Closing:...............................................................................................................................................41 9.6. Officials or Employees Responsible for Review:..........................................................................................................................41 9.7. Investment of Bond Proceeds:.....................................................................................................................................................43 9.8. Use of Bond-Financed Facilities:..................................................................................................................................................45 9.9. Continuing Disclosure:.................................................................................................................................................................45 9.10. Material event notices:................................................................................................................................................................46 9.11. Compliance with Bond Covenants:..............................................................................................................................................47 3 1 Pegs Financial Policies Gty of Port Angdes 1. FINANCIAL POLICIES 1.1. Goals&Objectives: 1.1.1. The Financial Policies assemble all of the City's key financial policies in one document. This comprehensive document provides the guidelines to ensure that the City is financially able to meet its immediate and long-term service objectives. The individual policies contained herein serve as guidelines for both the financial planning and internal financial management of the City. 1.2. Fiduciary Responsibility: 1.2.1. The City of Port Angeles is accountable to its citizens for the use of public funds. Municipal resources must be used prudently to ensure adequate funding for the services, public facilities,and infrastructure to meet the present and future needs of the community. These policies safeguard the fiscal stability required to achieve the City's goals and objectives. 1.3. Annual Review and Recommendations for Changes to Financial Policies: 1.3.1. The Chief Financial Officer shall,on an annual basis, prepare and deliver a report to the City Council and City Manager detailing the results of the review of the City of Port Angeles Financial Policies. In the report,the Chief Financial Officer shall make recommendations for revisions to existing policies,addition of new policies or the deletion of existing policies to accommodate any changes in generally accepted accounting principles(GAAP),changes in state regulations and laws or changes in federal regulations and laws. 1.3.2. Should a change be required in the City's Financial Policies as a result of a court decision or changes in state or federal laws before the City Council can review and take any action,the City Manager, upon recommendation by the Chief Financial Officer, is empowered to make any revisions to existing policies,creation of new policies or deletion of existing policies to allow the City of Port Angeles to be in compliance with governing authorities. 1.3.2.1. Provided that when the City Manager makes such change,the Chief Financial Officer shall immediately inform the City Council in writing of the change,the reason necessitating the change and the anticipated date the proposed revision will come before Council for their consideration. 41 P a g Financial Policies Gty of Port Angdes 2. LONG-RANGE FINANCIAL POLICIES 2.1. Resolution of Conflict between Policies: 2.1.1. If there is any conflict between the Long-Range Financial Policies and an individual financial policy contained elsewhere in this document,the Long-Range Financial Policy shall govern. In such case,the Chief Financial Officer shall notify the City Council and the City Manager in writing of the conflict together with recommendations that will correct any conflict going forward. 2.2. Ability to Pay: 2.2.1. Council shall consider the overall impact on the community and its"ability to pay" against the need to enact any tax, utility rate or fee/charge increase. 2.3. Use of Reserves: 2.3.1. Council shall not use reserves/fund balance as a funding source for on-going operations except on an emergency,short-term basis. 2.3.1.1. The use of rate stabilization reserves to provide for a "phase-in" of a larger utility rate increase shall be permitted provided that Council has adopted a scheduled plan for the utility rate increases as well as a plan to replenish the rate stabilization reserve account for funds previously advanced. 2.4. Unassigned Fund Balance: 2.4.1. Council shall direct that General Fund unassigned fund balance("reserves") be increased from its current minimum level of 10%of the current year General Fund expenditures to 25%of the current year General Fund expenditures. 2.4.1.1. To meet the additional funding requirement,Council shall consider the following actions in rank priority: 2.4.1.1.1. Allocation of any savings generated from prior year operations in the General Fund; 2.4.1.1.2. Allocation of additional utility excise tax revenues as a result of Council-adopted utility rate increases; 2.4.1.1.3. Allocation of new revenues to the General Fund resulting from levying the 1.0%increase in property tax as allowed by state law; 2.4.1.1.4. Allocation of any new sales tax revenue projected in the subsequent year operating budget for the General Fund; and 2.4.1.1.5. Reduction in overall spending in the General Fund necessary to generate the resources to be allocated to the General Fund unassigned fund balance as authorized by Council. 2.4.2. Council recognizes that the actions required to achieve a 25%unassigned fund balance in the General Fund may take an extended period to achieve. Therefore,the Council shall target a five-year horizon to achieve the desired funding level and Council shall review the target funding level on an annual basis as part of its deliberations for the next year's operating budget. 51 P a g Financial Policies Gty of Port Angdes 2.5. General Fund Subsidy to Street Fund and Medic I Utility Fund: 2.5.1. Council shall consider implementing a "phase-out"of General Fund subsidy for the Street Fund (Fund#102)and the Medic 1 Utility Fund (Fund#409). 2.5.2. The phase-out shall be over a period of not less than three(3)years nor more than five (5)years. 2.5.3. Consideration of replacing funding currently provided by the General Fund for the Street Fund shall include the option of the creation and implementation of a Transportation Benefit District(TBD). 2.5.4. Prior to consideration of either a Council-approved TBD or placement on the ballot for voter-approval,the Chief Financial Officer together with the Director of Public Works and Utilities shall prepare a report for consideration by the City Council and City Manager that: 2.5.4.1. Analyzes the proposed method of funding for the TBD, provide an estimate of the revenue for the next six(6)years to be generated if the TBD is approved,and provide a specific list of projects to be funded along with a timeline for completion of the identified projects. 2.5.5. Replacement funding for the Medic I Utility subsidy currently provided by General Fund for the Medic I Utility Fund shall be coordinated with an upward adjustment to applicable Medic I utility rates as provided in a Cost of Service Analysis(COSA). The COSA shall also include a time-line for the utility rate increases intended to replace funding support from the General Fund. 2.6. Issuance of New Debt and Ability to Pay: 2.6.1. Council shall consider, prior to the issuance of any new general government or utility debt,the overall impact of the City's ability to repay the debt obligation from existing taxes or utility rates. 2.6.2. If new taxes and/or increases in utility rates are necessary to generate revenue for the new debt service,the Chief Financial Officer shall provide the City Council and the City Manager a report detailing the annual and total estimated costs of the debt repayment and the plan or schedule for future tax and/or utility rate increases required to pay for the new debt. 2.7. Considerations for Debt Financing: 2.7.1. Council shall require the following for consideration of debt financing for projects: 2.7.1.1. If long-term debt financing is proposed,a financial analysis shall be required prior to any approval of the project that analyzes the long-term sustainability of funding from City resources,as well as the overall impact to the City's total debt obligation. 2.7.1.2. Any maintenance and operation (M&O)costs associated with the completed project must be identified along with the proposed source of funding for the M&O costs prior to seeking Council approval of the capital project. 2.8. Disposition of Unused Property: 2.8.1. Council shall consider selling of the Niichel property and other unused City properties to allow the City to have the resources to meet the debt service obligations of the 2005 Limited Term General Obligation Bond and its$1,000,000 balloon payment in 2021. 61 P a g Financial Policies Gty of Port Angdes 2.9. Use of Highly Volatile Funding Sources: 2.9.1. Council shall prohibit the use of highly volatile funding sources such as Lodging Tax ("hotel-motel tax"), Real Estate Excise Tax I (REET-1),or Real Estate Excise Tax II (REET-11) for debt service or other long-term commitments. Preference for use of such volatile funding sources should be given to one-time capital expense,short-term funding commitments for a capital expense or saving to create a funding pool that can "cash- out"a capital project. 2.10. Consideration for Smaller Scale Public Works Projects: 2.10.1. Council shall require that the Department of Public Works and Utilities examine its proposed public works construction schedule to identify any opportunities to encourage local contractors to bid on projects that are in line with their company's economic resources and/or bonding capabilities. 2.11. Capital Funding Priorities: 2.11.1. Council shall require that first priority for funding of capital projects should be given to those projects designed to preserve and maintain existing infrastructure. 2.11.1.1. Council has established the following rank order: 2.11.1.1.1. Legal and statutory requirements and mandates provided realistic and affordable sources of funding are available to the City. 2.11.1.1.2.Continuation of multi-year projects provided realistic and affordable sources of funding are available to the City. 2.11.1.1.3.Capital funding shall be given to those projects that leverage City funding with grants from the State and/or federal agencies. 2.11.1.1.4.Capital funding shall be given to public-private partnership projects,whereby the City can leverage its contribution with private dollars to enable a more economically diverse project where the primary risk for the long-term financing is transferred to a private partner. 2.12. Use of One-time Revenues: 2.12.1. Council shall require that one-time revenues or revenues significantly above the budgeted revenue target be used for one-time expenses and not be utilized to fund recurring expenses such as salaries and wages or debt service. 2.13. Property Tax and Future Budgets: 2.13.1. Council shall require that in the development of all preliminary annual operating budgets,the Chief Financial Officer should include a 1.0%property tax revenue increase for consideration by Council. 2.13.2. The Chief Financial Officer shall forward to the City Council and City Manager prior to any approval from Council for the 1.0%property tax increase a report that details the estimated revenue that may be generated if the 1.0%increase would be approved by Council. In addition,the report shall also include an analysis of the potential long-term impact on the General Fund if Council decided not to levy the 1.0%increase. 71 P a g Financial Policies Gty of Port Angdes 2.14. Use of Banked Property Tax Capacity: 2.14.1. Council shall not consider levying of any"banked" property tax levy capacity unless the following conditions exist: 2.14.1.1. The Council is considering adopting an annual budget that requires a reduction in core services as identified by Council;and 2.14.1.2. Council has voted to authorize the implementation of the 1.0%in property tax collections. 2.15. Utility Excise Tax Rates: 2.15.1. Council shall not consider any increase to the City's utility excise tax rates through at least the end of the 2019 fiscal year. 2.15.2. Prior to any proposal to Council for an increase in a utility excise tax rate,the Chief Financial Officer shall prepare a report for the City Council and the City Manager, noting the amount of the proposed tax increase,an estimate of new or additional annual revenues for the next six(6),years and the need for the additional funding to be derived from the increased utility excise tax rate. 2.16. Setting of Fees and Charges for Building Permits: 2.16.1. Council shall consider that the fees and charges for building permits shall include a total cost recovery of direct and indirect costs. 2.16.2. Council may consider a potential reduction in the fees and charges for a building permit; it shall only do so if a project creates long-term family wage jobs and/or an identifiable long-term revenue increase in sales tax as a result of the project's construction. 2.16.3. The Chief Financial Officer,together with the Director of Community and Economic Development,shall prepare a report to the City Council and City Manager every three (3)years and prior to consideration of the next annual operating budget that compares the City's building permit fee and charges in comparison to fees and charges from other comparable cities,together with an analysis of the net subsidy required of the General Fund to off-set any shortfall in revenues associated with the total building permit operating costs. 2.17. Setting of Fees and Charges for Parks and Recreation Programs and Services: 2.17.1. Council shall require that fees and charges imposed for parks and recreation shall be based on a cost recovery hierarchy. 2.17.2. The cost recovery hierarchy shall give consideration for potential subsidy from other parks and recreation fees and/or the General Fund for programs based on targeted audiences such as children and youth,special populations or broad-based community programs. 2.18. Utility Rate Design: 2.18.1. Council shall require that utility rates be designed to reflect the underlying nature of the costs for each respective utility. 2.18.2. Council may consider establishing differential utility rates for specified utility classes to achieve specific, identifiable goals such as reduced rates to encourage recycling of used tires or construction materials. 81 P a g Financial Policies Gty of Port Angdes 2.19. Economic Development Fund: 2.19.1. Council shall consider creation and/or identification of a long-term,dedicated funding source for the Economic Development Fund (Fund#103)which allows for funding of a reserve fund for the collection of resources that could be used as a grant match and/or source of local government direct project funding. 2.20. Implementation of Utility Rate Increases: 2.20.1. Council shall give preference to more frequent, but smaller, incremental increases to rates,fees,and charges rather than less frequent but larger increases. 2.20.2. In all cost of service analysis(COSA) efforts, preference shall be given to utilizing a "phased-in" approach for all future rate increases,even if it may be necessary to slow- down or delay planned capital project implementation as part of an overall "ability to pay"analysis within the COSA. 2.21. Annexation and Cost of Service Analysis: 2.21.1. Council shall require a Cost of Service Analysis(COSA) prior to any consideration of a potential annexation. Included in the COSA will be an estimation of costs associated with providing the current level of City services to an area under consideration for annexation as well as an estimate of all revenue that may be derived from the area included in the proposed annexation. 2.22. Employee Salaries and Benefits: 2.22.1. Council shall require a salary and benefit survey to assess the comparability of salaries, wages,and benefits paid by the City of Port Angeles in comparison to the market place for prospective City employees. Included in that analysis shall be the following: 2.22.1.1. The survey shall be done no more often than every three (3)years nor less often than every five (5)years. 2.22.1.2. The survey shall take into account internal comparability for responsibility and critical importance to the City for short and long-term decision-making. 2.22.1.3. The survey shall take into account external factors including comparable cities, private-sector jobs,and other factors that influence the City's ability to recruit and retain qualified employees. 2.22.1.4. The Chief Financial Officer shall prepare and deliver a report in writing to the City Council and City Manager prior to any consideration of a change in salary,wages,or benefit levels for unionized and/or non-represented employees that details the estimated costs of any proposals that are under consideration for approval by Council. 2.22.1.5. The Mayor,with approval of the Council, may appoint a special,ad hoc Council Committee to work with the City Manager in the development of any proposals regarding salaries,wages,and benefits for employees of the City. 2.23. Employee Contributions for Health Insurance: 2.23.1. Council shall require that all employees contribute to the cost of their health insurance coverage for both the employee as well as any family coverage that may be required. 2.23.2. Council recognizes that implementation of this policy statement may require amendments to collective bargaining agreements covering various groups of City employees and will need to be negotiated as part of a collective bargaining process. L r_1 - 0 9 91 P a g Financial Policies Gty of Port Angdes 2.24. Payments by the City to Vendors and Employees: 2.24.1. Council shall require that all payments made by the City be accomplished via electronic funds transfer wherever possible, as a means of reducing costs to the City. L r-I 0& 1 10 1 P Financial Policies Gty of Port Angdes 3. OPERATING POLICIES 3.1. Goals 3.1.1. To ensure delivery of an exceptional level of municipal services by assuring reliance on ongoing resources and by maintaining a stable financial base. 3.1.2. To ensure that the City is in a position to respond to changes in the economy or new service requirements without an undue amount of financial stress. 3.1.3. To maintain an excellent credit rating in the financial community and assure taxpayers that the City is well managed financially and maintained in sound fiscal condition. 3.1.4. To adhere to the highest accounting and management policies as set by the Government Finance Officers'Association (GFOA),the Governmental Accounting Standards Board (GASB),and other professional standards for financial reporting and budgeting. 3.1.5. To ensure the legal use of financial resources through an effective system of internal controls. 3.2. Revenue Policies 3.2.1. The City will strive to maintain a diversified mix of revenues in order to maintain needed services during periods of declining economic activity. 3.2.2. General Fund revenue estimates should be prepared on a conservative basis in order to minimize fluctuations in service levels during periods of economic downturn. 3.2.3. As much as is reasonably possible,City services that provide private benefit shall be supported by fees and charges in order to provide maximum flexibility in the use of general revenues to meet the cost of services of broader public benefit. The City shall establish user charges as follows: 3.2.3.1. Building Permits: Fees shall be based on total cost recovery of direct and indirect expenses. 3.2.3.2. Parks&Recreation: Fees shall be based on a cost recovery hierarchy whereby adult programs help to subsidize programs for children,youth,and special populations. 3.2.3.3. Rental of City Facilities: Fees shall be based on 100%of total direct and indirect costs, plus an amount to be reserved for future major maintenance of assets utilized by the rental if the rental is for private business purposes. As a general requirement,the rental fees shall,at a minimum,cover the direct expenses associated with permitting and facilitating the rental unless the event is sponsored by the City of Port Angeles. 3.2.3.4. In the event that fees and charges do not achieve their targeted cost recovery benchmarks,the City Manager shall recommend a plan for consideration by Council that either reduces programs and services to be offered or provides for a one-time subsidy from the General Fund for the current fiscal year's operation. 3.2.3.5. Consideration of any future subsidy from the General Fund shall be included in discussions by Council prior to the adoption of the next fiscal year's budget. 111 P a g Financial Policies Gty of Port Angdes 3.2.4. The City shall systematically review user fees and rates and consider adjustments as necessary to take into account the effects of additional service costs and inflation. Rate studies shall take into account direct and indirect costs of operations,administration, plant maintenance,debt service,depreciation of capital assets,and other related costs. 3.2.5. Proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes will be accounted for in separate special revenue funds, unless the Chief Financial Officer issues a finding that directs the revenue to be accounted for in a different fund for a specific reason. Budgeted special revenue funds will be included and reviewed in the City's annual budget process. 3.2.6. The City will follow an aggressive policy of collecting all monies due,to the extent that the collection efforts are cost effective. 3.2.6.1. The City may elect to not collect minor amounts due the City if the costs of collection equal or exceed the amount of money to be collected. The Chief Financial Officer shall determine on an annual basis what constitutes a minor amount referenced above and shall inform the Council and City Manager as to the determination of what constitutes a minor amount. 3.2.7. Economic downturns and anticipated funding shortfalls will be analyzed by the Chief Financial Officer and City Manager for potential solutions. Deficit financing and borrowing to support on-going expenditures is not the policy of the City as a response to long-term revenue shortfalls. Revenue forecasts will be revised and expenditures will be reduced to conform to the revised forecast. 3.2.8. All potential grants shall be carefully examined for matching requirements and other City obligations prior to grant acceptance. Some grants may not be accepted if local matching funds cannot be justified. Grants may also be rejected if programs must be continued with local resources after grant funds are exhausted or if they place an unacceptable strain on local resources. 3.2.9. Significant preference shall be given to rate and fee increases that are smaller and applied more frequently than intermittent but significantly larger rate increases. 3.3. Expenditure Policies 3.3.1. The City will only propose operating expenditures that can be supported from on-going operating revenues. Before the City undertakes any agreements that would create fixed on-going expenses,the cost implications of such agreement will be fully determined for current and future years. Capital expenditures may be funded from one-time revenues, but the operating budget expenditure impacts of capital purchases will be reviewed for compliance with this policy provision. 3.3.2. Department directors are responsible for managing their budgets within the total appropriation for their department. 3.3.3. The City will assess charges for services provided internally by other funds. The estimated direct and indirect costs of service will be budgeted and charged to the fund receiving the service. Interfund service fees charged to recover these costs will be recognized as revenue to the providing fund. The allocation method will be reviewed annually. 3.3.4. Emphasis is placed on improving individual and work group productivity rather than adding to the work force. The City will invest in technology and other efficiency tools to 121 P a g r-I 00 Financial Policies Gty of Port Angdes maximize productivity. The City will hire additional staff only after the need of such positions has been demonstrated and documented. 3.3.5. All compensation planning and collective bargaining will focus on the total costs of compensation, including direct salary, healthcare benefits, pension contributions, educational and longevity pay,and other non-salary benefits which are a cost to the City. 3.4. Capital Improvement Policies 3.4.1. It is the City's policy to ensure that adequate resources are allocated to preserve existing infrastructure and other capital assets before targeting resources toward construction or acquisition of public facilities or major equipment. 3.4.2. The City will develop a multi-year Capital Facilities Plan (CFP)to identify and coordinate infrastructure,facility,and equipment needs in a way that maximizes the return to the community. All capital improvements will be made according to the adopted CFP. 3.4.3. The Capital Facilities Plan will be formulated using an analysis of long-term,overall resources and will include projected funding sources and ongoing operations and maintenance costs. Future changes in economic or demographic factors identified in the financial forecasting process will be incorporated in the capital budget projections. The plan will be updated annually. Any planned use of debt financing shall include an analysis of debt service costs and funding resources available to pay the associated debt. 3.4.4. The first year of the Capital Facilities Plan will constitute the capital budget for the ensuing budget year. The capital budget and the base operating budget will be reviewed at the same time to assure that the City's capital and operating needs are evaluated in a balanced manner. 3.4.5. A long-range Transportation Improvement Plan (TIP)will provide the framework for the City's future investment in transportation related infrastructure. This ensures that infrastructure projects incorporated into the Capital Facilities Plan (CFP)will be the embodiment of the officially stated direction of the City's Comprehensive Plan and supporting documents. 3.4.6. The City may administer a Local Improvement District(LID) program. For capital projects whose financing depends in part or wholly on an LID, interim financing may be issued to support the LID's portion of the project budget. The amount of the interim financing shall be the current estimate of the final assessment roll as determined by the administering department. 3.4.7. The City will determine the most cost effective financing method for all new projects. Whenever possible,the City will use intergovernmental assistance and other outside resources to fund capital projects. Additional funding may come from designated surpluses in the General Fund and certain special revenue funds as outlined in the operating budget policy. 3.4.8. An operating cost projection, including all funding sources,will be required for all projects proposed for funding within six (6)years. 131 P a g Financial Policies Gty of Port Angdes 3.5. Reserve Fund Policies 3.5.1. Part of financial stability is to maintain adequate reserves and fund balances. The definition of Fund Balance is the net worth of a fund, measured by total assets minus total liabilities. 3.5.2. In the governmental funds,the City recognizes the following hierarchy of fund balance classifications,which are based primarily on the extent to which the City is bound by constraints placed on resources: 3.5.2.1. Nonspendable-- Amounts that cannot be spent due to form (such as inventories and pre-paid amounts),and amounts that must be maintained intact legally or contractually(including the corpus or principal of a permanent fund). In addition, long-term loan and notes receivables,and property held for resale would be reported here unless the proceeds are restricted,committed,or assigned. 3.5.2.2. Restricted -- Amounts constrained for a specific purpose by external parties, constitutional provision,or enabling legislation. 3.5.2.3. Committed -- Amounts constrained for a specific purpose as authorized by the City Council. Additional action by the Council is required in order to remove or change the constraints placed on the resources. The action to constrain resources must occur prior to year-end; however,the amount can be determined in the subsequent period. 3.5.2.4. Assigned-- For all governmental funds other than the general fund,any remaining positive amounts not classified as nonspendable, restricted,or committed. For the general fund,the City Manager has been delegated authority to assign amounts intended to be used for a specific purpose. All assigned fund balance requests from departments must be approved in writing by the City Manager and provided to the Finance Department by year-end in order to be officially considered assigned. Amounts reported as assigned should not result in a deficit in unassigned fund balance. 3.5.2.5. Unassigned-- For the general fund,amounts not classified as nonspendable, restricted,committed,or assigned and are available to use for any purpose. The general fund is the only fund that would report a positive amount in unassigned fund balance. For all other governmental funds, unassigned fund balance is the amount expended in excess of resources that are nonspendable, restricted,committed,or assigned. If this results in a deficit in unassigned fund balance,then assigned fund balance shall be reduced. 3.5.3. Special Revenue Funds will maintain sufficient fund balances to provide adequate cash flow and to withstand downturns in the economy. These fund balances will be analyzed annually. 3.5.4. The General Fund's targeted unassigned fund balance will be a minimum of 25%of expenditures,excluding capital expenditures. This fund balance will be established and maintained to: 3.5.4.1. Offset unanticipated economic downturns; 3.5.4.2. Provide a sufficient cash flow for daily financial needs at all times; 3.5.4.3. Establish an adequate level of reserves to provide for the timely replacement of equipment; and 141 P a g Financial Policies Gty of Port Angdes 3.5.4.4. Sustain City services in the event of a catastrophic event such as a natural/manmade disaster or a major downturn in the economy. 3.5.4.5. If unassigned fund balance falls below the required minimum level,the City Manager shall notify the Council immediately. The Council must adopt a plan to restore this balance to the target level within 60 months. 3.5.5. In addition,the general fund will maintain a committed fund balance to be used as a contingency as specified in PAMC 3.04.040. There are no minimum requirements on the level of contingency fund balance. 3.5.6. There are no specific requirements on the level of assigned fund balance in the general fund, unless future revenue streams are specified by the donor or source of funding. 3.5.7. The City will maintain the following reserves for the proprietary funds identified below: 3.5.7.1. An operating reserve will be established and maintained to provide sufficient cash flow to meet daily financial needs as recommended by the City's financial advisor. The reserve requirements will be reviewed every three years and will be based upon: 3.5.7.2. 60 days operating expenses: Electric,Water,and Wastewater Funds. 3.5.7.3. 90 days operating expenses:Solid Waste and Stormwater Funds. 3.5.7.4. Operating expenses exclude ending fund balances,capital purchases, construction costs,debt service payments,and transfers. 3.5.7.4.1. A rate stabilization reserve will be established and maintained for the Electric Fund to provide a means to mitigate wholesale power purchase cost increases. A rate stabilization reserve will be established and maintained for the Wastewater Fund to provide a means to mitigate retail rate increases based on unforeseen cost increases. These accounts will be analyzed annually to ensure an adequate amount is placed in reserves. 3.5.7.4.2. A post-closure maintenance reserve within the Solid Waste fund will be established and maintained to provide sufficient cash flow to meet the anticipated cost of maintenance in accordance with State law. This reserve requirement will be reviewed annually. 3.5.7.4.3. Bond reserves will be created and maintained as required in utility funds in accordance with the provisions set forth in the bond covenants. 3.5.7.4.4. A contingencies and replacement reserve for the Electric fund will be established and maintained in accordance with bond covenants. 3.5.7.4.5. The City will maintain reserve funds to meet requirements for the guarantee of debt service in compliance with bond indenture agreements. 3.5.7.4.6. The City will maintain the self-insurance funds at a sufficient level to provide health care and workers'compensation benefits and avoid catastrophic loss. 3.5.7.4.7. The City will maintain equipment replacement reserves as 151 P a g Financial Policies Gty of Port Angdes specified in the City's Equipment Replacement and Vehicle Use Policy. 3.5.7.4.8. The City will maintain adequate reserves in the Information Technology Fund to ensure timely replacement, upgrade,and/or additions to the City's technology infrastructure. 3.5.8. The City will maintain an actuarially funded Firemen's Pension Fund as determined by actuarial study. 3.5.9. 161 P a g Financial Policies Gty of Port Angdes 4. ACCOUNTING&REPORTING POLICIES 4.1. Accounting Requirements: 4.1.1. The City's accounting and financial reporting systems will be maintained in conformance with current accepted principles and standards of the Governmental Accounting Standards Board (GASB),Generally Accepted Accounting Principles(GAAP),and the Government Finance Officers Association (GFOA). As a commitment to this policy,the Finance Department will periodically submit its Comprehensive Annual Financial Report (CAFR)for the GFOA Certificate of Achievement for Excellence in Financial Reporting. 4.2. BARS—Budgeting,Accounting and Reporting System: 4.2.1. The State Auditor's Office provides a standard account classification system through its Budgeting,Accounting and Reporting System(BARS). The City will maintain its records on a basis consistent with BARS and current BARS manuals will be maintained in the Finance Department. 4.3. Requirements of the Finance Department: 4.3.1. The Finance Department will maintain financial systems to monitor expenditures, revenue,and performance of all municipal programs on an ongoing basis. Regular monthly financial reports will present a summary of financial activity for the period and the cumulative data for the budget year. 4.3.2. All applicable standard governmental accounting practices will be used to maintain the City's financial records, including the appropriate uses of accrual and modified accrual methods of accounting,encumbrance accounting,current financial resources and economic resources focus for statement presentation,and the proper classification of funds. 4.3.3. The Finance Department will maintain fixed asset and depreciation records for all capital assets owned by the City. The threshold for capitalization of non-infrastructure assets is $7,500. 4.3.4. Under GASB Statement No.34, infrastructure will be included as capital assets in the financial reports. The City will develop and follow a methodology of maintaining infrastructure records, including appropriate depreciation, under the guidelines of the statement. 4.4. External Auditing Requirement: 4.4.1. The State Auditor's Office will annually perform a financial and compliance audit and issue an audit report. Results of the annual audit will be provided to the City Council and public. 171 P a g Financial Policies ty of Port Angdes 5. BUDGET POLICIES 5.1. Primary Budget Responsibility 5.1.1. The City Manager is responsible for preparing and submitting to the Council a tentative budget for the fiscal year. The City Manager is also responsible for keeping the Council fully advised of the financial condition of the City and its future needs. 5.1.2. The City Council has final responsibility for approving the annual Operating Budget and Capital Budget. 5.1.3. Department directors, under the direction of the City Manager,are responsible for proposing programs, recommending funding levels,and formulating budget proposals for implementing service programs in accordance with established goals and directives. 5.1.4. The Finance Department is responsible for coordinating the overall preparation and administration of the City's budget in compliance with applicable State of Washington statutes governing local government budgeting practices. 5.1.5. The Finance Department provides revenue budget estimates,assists department staff in identifying budget problems and formulating alternative solutions,and prepares and distributes the final budget document. 5.1.6. To facilitate and implement the budget process,the Chief Financial Officer will provide the Council with an annual budget calendar in accordance with State law. 5.2. Operating Budget 5.2.1. The operating budget will define the City's annual financial plan as developed by the City Council in establishing goals and objectives for the ensuing year. 5.2.2. Ongoing revenues should be equal to or greater than ongoing expenditures. Each City fund budget shall identify ongoing resources that at least match expected ongoing annual requirements. One-time cash transfers and non-recurring ending fund balances will be applied to reserves or to fund one-time expenditures;they will not be used to fund ongoing programs. 5.2.3. In accordance with State law,the City Manager is authorized to transfer budgeted amounts within any fund; however,any revisions that alter the total expenditure authority(appropriation)of a fund must be approved by the City Council. 5.2.4. Additional staff positions should be recommended only after the need has been fully substantiated. An increase in the number of full-time equivalent position must be approved by the City Council. The City Manager has the authority to approve additions and/or changes to temporary,seasonal,and part-time positions. Nothing in this paragraph is intended to diminish or interfere with the City Manager's right to control the appointment and removal of City employees. 5.2.4.1. Only the City Council can authorize an increase in the authorized City career staffing complement. Such approval is accomplished through the adoption of the annual operating budget or through subsequent budget amendments approved by the City Council. 5.2.5. The City will maintain a level of expenditures,which will provide for the public well- being and safety of the residents of the community. 5.2.6. The operating budget will provide for appropriate design,construction, maintenance and replacement of the City's capital infrastructure, plant,and equipment. 18 1 P Financial Policies Gty of Port Angdes 5.2.7. A multi-year vehicle and equipment maintenance and replacement schedule will be developed based on the City's projections of its future replacement and maintenance needs. The projections will be updated and the schedule revised on an annual basis. 5.2.8. The budget will provide sufficient levels of maintenance and replacement funding to ensure that all capital facilities and equipment are properly maintained and that such future costs will be minimized. 5.2.9. The following criteria must be met to qualify any portion of the year-end General Fund surplus for one-time operations, nonrecurring emergency capital expenditures,or dedicated to the Capital Facilities Plan: 5.2.9.1. There are surplus balances remaining after all reserve requirements and current expenditure obligations are met. 5.2.9.2. An analysis has occurred assuring that the City has an adequate level of short and long-term resources to support the proposed use of surplus balances. 5.2.9.3. The funds are specifically appropriated by the City Council. 5.2.10. Year-end surplus in the Street Fund shall be designated for use in the Capital Facilities Plan or be used for one-time capital expenditures for street and parks projects. Use of surplus for these purposes must be approved by the Council. 5.3. Budgetary Control 5.3.1. The budget will be developed and administered in compliance with applicable State of Washington budgetary statutes. 5.3.2. The Finance Department will maintain a system for monitoring the City's budget performance. The system will include provisions for amending the budget during the year in order to address unanticipated needs or emergencies. 5.3.3. Appropriations requested after the original budget is adopted will be approved only after consideration of the availability of current and future revenues. Such appropriations must be approved by City Council. 5.3.4. Accounting and reporting practices will be maintained to provide accurate and timely monitoring of the City's budget performance. 5.3.5. Monthly budget reports will be issued by the Finance Department to Department Heads regarding the department's actual performance compared to budget estimates. The department also assists in implementing any needed corrective action approved by the City Manager. 5.3.6. Current revenues and operating expenditures will be reviewed quarterly by the City Council, and the Chief Financial Officer will prepare a mid-year assessment of the City's financial position for presentation to the Council. 191 P a g Financial Policies Gty of Port Angdes 6. DEBT MANAGEMENT POLICIES 6.1. Goals 6.1.1. All borrowing is subject to approval by the City Council.The basic objectives of the City's debt management policy are: 6.1.1.1. To achieve the lowest possible cost for borrowing. 6.1.1.2. To ensure access to the bond market to adequately provide the capital needed to finance public improvement and other long-term development objectives. 6.1.1.3. To maintain strong and sound credit,demonstrated by its commitment to meet all obligations in a timely fashion. 6.1.1.4. To maintain a level and structure of outstanding indebtedness that does not lead to excessive debt service requirements,thereby avoiding unnecessary strains on the operating budget. 6.1.1.5. To maintain the confidence of lending markets and the taxpayers. 6.1.1.6. To maintain adequate debt service coverage. 6.2. Short-Term Debt 6.2.1. Short-term debt covers a period of one(1)year or less. With careful monitoring and planning of cash inflow and outflow requirements, it is intended that the City will avoid the use of short-term indebtedness to the maximum extent possible. 6.2.2. The City may use short-term debt to cover temporary cash flow shortages resulting from delay in receipting tax revenues or issuing long-term debt or to finance capital construction. 6.2.3. Interfund loans with a repayment period of three years or less, may be used to meet short-term cash flow needs as an alternative to outside debt instruments. Interfund loans will be permitted only if an analysis of the lending fund indicates excess funds are available and that the use of these funds will not adversely affect current operations. 6.3. Long-Term Debt 6.3.1. Long-term debt is defined as debt that exceeds three years.The City will confine long- term borrowing to capital improvements that cannot be financed from current revenues. 6.3.2. Acceptable uses of bond proceeds will include items that can be capitalized and depreciated. Refunding bond issues designed to restructure current outstanding debt is an acceptable use of bond proceeds, provided an analysis is done which determines the net present value(NPV)of savings is favorable for the City. 6.3.3. Where possible,the City will use special assessment revenue,or other self-supporting bonds, instead of general obligation bonds. 6.3.4. The City will not use long-term debt for current operations. 6.3.5. The City will maintain communications with bond rating agencies regarding its financial condition. The City will follow a policy of full disclosure on financial reports and bond prospectuses including proactive compliance with disclosure to the Electronic Municipal Market Access(EMMA)according to guidelines established by the Municipal Securities Rulemaking Board (MSRB). 201 P a g Financial Policies Gty of Port Angdes 6.4. General Obligation Bond Policy 6.4.1. Before general obligation bond propositions are placed before the voters, projects proposed for financing through general obligation debt should be included in the Capital Facilities Program and be accompanied by an analysis of the future operating and maintenance costs associated with the project. 6.4.2. Bonds will not be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. 6.4.3. Limited Tax General Obligation (LTGO) Bond Policy: 6.4.3.1. As a precondition to the issuance of limited tax general obligation bonds, alternative methods of financing should also be examined. 6.4.3.2. Limited tax general obligation bonds will be issued under certain conditions: 6.4.3.2.1. A project in progress which requires monies not available from alternative sources; 6.4.3.2.2. Matching fund monies are available which may be lost if not applied for in a timely manner; or 6.4.3.2.3. Catastrophic or emergency conditions exist. 6.4.3.2.4. A clearly identified need that helps achieve Council's desired vision for the City and is in line with the priorities approved by the City Council. 6.4.4. Unlimited Tax General Obligation (UTGO) Bonds and Legal Debt Limits: 6.4.4.1. Under RCW 39.36.020(2),the public may vote to approve UTGO bond issues for general government purposes in an amount not to exceed 2.5%of assessed valuation. Within the 2.5%limit,the Port Angeles City Council may approve LTGO bond issues and/or lease purchases up to 1.5%of the City's total assessed value (RCW 39.36.020(2)and RCW 35.42.200). In addition, state law provides for an additional 2.5%of assessed valuation for parks and open space purposes with a vote of the people. 211 P a g Financial Policies Gty of Port Angdes 7. INVESTMENT POLICIES 7.1. Goals 7.1.1. The goal of the policy is to invest public funds in a manner that will provide the highest investment return with the maximum security,while meeting the daily cash flow demands and conforming to all Washington statutes governing the investment of public funds. 7.1.2. Available cash will be co-mingled into a common investment portfolio and earnings from such portfolio will be distributed monthly. This policy will apply to all financial assets of the City,which are accounted for in the City's annual financial report. 7.1.3. The following general standards shall govern the investment of City funds: 7.1.3.1. All funds not required for immediate expenditure are available for investment. 7.1.3.2. The Chief Financial Officer or City Treasurer shall determine the amount of money available in each fund for investment purposes and shall make investments in accordance with State Statutes applicable thereto, including RCW 35A.40.050 and the policies of the City. 7.1.3.3. All monies available for investment shall be commingled when possible or practical within one common investment portfolio for the mutual benefit of all participating funds,and all income derived therefrom shall be apportioned among the various participating funds in direct proportion of the amount of money invested by each. 7.2. Objectives 7.2.1. The primary objectives, in priority order,of the City's investment activities shall be: 7.2.1.1. Legality: The City's investment will comply with all statutes governing the investment of public funds and the provision of all applicable bond ordinances. 7.2.1.2. Safety: Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 7.2.1.3. Credit Risk: The City of Port Angeles will minimize credit risk,the risk of loss due to the failure of the security issuer or backer, by: 7.2.1.3.1. Limiting investments to the safest types of securities. 7.2.1.3.2. Pre-qualifying the financial institutions, brokers/dealers, intermediaries,and advisers with which the City will do business. 7.2.2. Diversify the investment portfolio so that potential losses on individual securities will be minimized. 7.2.2.1. Interest Rate Risk: The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by: 7.2.2.1.1. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations,thereby avoiding the need to sell securities on the open market prior to maturity. 7.2.2.1.2. Investing operating funds primarily in shorter-term securities, 221 P a g r_1 no Financial Policies Gty of Port Angdes money market mutual funds,or similar investment pools. 7.2.2.2. Liquidity: The City's investment portfolio shall remain liquid to enable the City to meet all reasonably anticipated operating requirements. Because all cash requirements cannot be anticipated, investments in securities with active secondary or resale markets are recommended. A portion of the portfolio also may be placed in money market mutual funds or local government investment pools offering same day liquidity for short-term funds. 7.2.3. Return on Investment(Yield): Yield should become a consideration only after the basic requirements of safety and liquidity have been met. The City's investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles,taking into account the investment risk constraints and liquidity needs. The core of investments are limited to relatively low risk securities, in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions: 7.2.3.1. A security with declining credit may be sold early to minimize loss of principal. 7.2.3.2. A security swap would improve the quality,yield,or target duration in the portfolio. 7.2.3.3. Liquidity needs of the portfolio require that the security be sold. 7.2.4. Prudence 7.2.4.1. The standard of prudence to be applied by investment officials shall be the "prudent investor" rule,which states"...investments shall be made with judgment and care, under circumstances then prevailing,which persons of prudence,discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment,considering the probable safety of their capital as well as the probable income to be derived." 7.2.5. Delegation of Authority 7.2.5.1. Authority for investment decisions shall be granted to the City Manager, Chief Financial Officer,and City Treasurer. Each is authorized to sign necessary agreements and documents for the purpose of carrying out this policy,which do not obligate the City for the expenditure of funds. Management responsibility for the investment program is hereby delegated to the Chief Financial Officer and/or City Treasurer. 7.2.6. Ethics and Conflicts of Interest 7.2.6.1. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program,or which could impair their ability to make impartial investment decisions. Employees and investment officials authorized to place or approve investments shall not personally, nor through a close relative, maintain any accounts, interest,or private dealings with any firm with which the City places investments,except for regular savings accounts, checking accounts, money market accounts,or other similar transactions which are offered on a non-negotiable basis to the general public. All persons authorized or approved for investments shall disclose to the City 231 P a g Financial Policies Gty of Port Angdes Manager any material financial interest in financial institutions that conduct business within this jurisdiction. All personnel involved in the investment function shall adhere closely to the City's Code of Ethics. 7.2.7. Authorized Financial Dealers and Institutions 7.2.7.1. As required by the Public Deposit Protection Commission (PDPC),all authorized public depositories will be located in the State of Washington (RCW 39.58.080). 7.2.7.2. Authorized broker/dealers and financial institutions will be limited to those that meet one or more of the following: 7.2.7.2.1. Financial institutions approved by the Washington Public Deposit Protection Commission;or 7.2.7.2.2. Primary dealers recognized by the Federal Reserve Bank;or 7.2.7.2.3. Non-primary dealers or institutions qualified under U.S.Securities and Exchange Commission Rule 15c3-1 (Uniform Net Capital Rule),and a certified member of the National Association of Securities Dealers. 7.2.7.3. Whenever possible,the City shall make an effort to utilize brokers or dealers doing business in the State of Washington,or recognized adequately capitalized dealers on the west coast. 7.2.7.4. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the City invests. 7.2.8. Authorized Investments 7.2.8.1. All municipal corporations in Washington State, including the City of Port Angeles,are empowered by statute to invest in securities and deposits authorized by State statute as defined in RCW 35A.40.050. These eligible securities include: 7.2.8.1.1. Investment deposits, including certificates of deposit,with qualified public depositories as defined in RCW 39.58. 7.2.8.1.2. Certificates, notes,or bonds of the United States,or other obligations of the United States or its agencies,or of any corporation wholly owned by the government of the United States(such as the Government National Mortgage Association). 7.2.8.1.3. Obligations of government-sponsored corporations,which are eligible as collateral for advances to member banks as determined by the Board of Governors of the Federal Reserve System(these include, but are not limited to, Federal Home Loan Bank notes and bonds, Federal Farm Credit Bank consolidated notes and bonds, and Federal National Mortgage Association notes, bonds and guaranteed certificates of participation). 7.2.8.1.4. Bankers'acceptances purchased on the secondary market. 7.2.8.1.5. Bonds of the State of Washington and any local government in the State of Washington,which have,at the time of investment,one of the three highest credit ratings of a nationally recognized rating 241 P a g Financial Policies Gty of Port Angdes agency. 7.2.8.1.6. Repurchase agreements for securities listed in 2,3,and 4 above, provided that the transaction is structured so that the City of Port Angeles obtains control over the underlying securities and a Master Repurchase Agreement has been signed with the bank or dealer. 7.2.8.1.7. State of Washington Local Government Investment Pool. 7.2.8.1.8. Commercial Paper purchased in the secondary market and having received the highest rating by at least two(2) Nationally Recognized Statistical Rating Organization (NRSROs)at the time of purchase and adhering to the investment policies and procedures adopted by the State Investment Board. 7.2.8.1.9. Mutual funds used specifically for debt issues related to arbitrage. 7.2.9. Safekeeping and Custody 7.2.9.1. All investment securities bought by the City, including collateral being held on repurchase agreements,will be held by the City or in safekeeping by the City's custodian bank. A third party bank trust department may be appointed as agent for the City under the terms of a custody or trustee agreement signed by both the bank and the City. The primary agent of the custodian bank will provide a safekeeping receipt to the City listing the specific instrument, its rate and maturity,and any other pertinent information. All security transactions, including collateral for repurchase agreements, entered into by the City will be conducted on a delivery-versus-payment (DVP) basis. 7.2.10. Diversification 7.2.10.1. It is the policy of Port Angeles to diversify its investment portfolios.To eliminate risk of loss resulting from the over-concentration of assets in a specific maturity, issuer or class of securities,all cash and cash equivalent assets in all funds shall be diversified by maturity, issuer,and by the class of security. In establishing specific diversification strategies,the following maximum percentage of the City's portfolio shall apply: 7.2.10.1.1. Washington State Local Government Investment Pool-100% 7.2.10.1.2. U.S.Treasury Obligations—100% 7.2.10.1.3. Federal Agency securities—100% 7.2.10.1.4. Municipal Investment Accounts—40% 7.2.10.1.5. Certificates of Deposit(CDs) -50% 7.2.10.1.6. Repurchase Agreements(Repos)-40% 7.2.10.1.7. Bonds of State of Washington or any local government in the State of Washington—20% 7.2.10.1.8. Bonds of other states or local governments of a state other than the State of Washington -15% 7.2.11. Maturities 251 P a g Financial Policies Gty of Port Angdes 7.2.11.1. To the extent possible and to preclude sales of securities that could result in a loss, investments will be made to coincide with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements,a portion of the portfolio should be continuously invested in readily available funds such as the Local Government Investment Pool and money market funds,to ensure that appropriate liquidity is maintained to meet ongoing obligations. 7.2.11.2. To this extent, 10%of the portfolio,at the time of investment,will be comprised of investments maturing within a year. 7.2.11.3. Satisfying this requirement, remaining funds may be invested in authorized securities not to exceed five and a half years in maturity,except when compatible with specific investment needs. Maturities longer than five and a half years must have prior approval of the Chief Financial Officer. 7.2.11.4. To ensure additional liquidity and provide for ongoing market opportunity, the weighted average maturity and effective duration of the overall portfolio shall not exceed three years without the prior approval of the Chief Financial Officer. 7.2.12. Internal Control 7.2.12.1. The controls shall be designed to prevent losses of public funds arising from fraud,employee error, misrepresentation of third parties, unanticipated changes in financial markets,or imprudent actions by employees and officers of the City. 7.2.12.2. Controls deemed most important include: control of collusion,separating transaction authority from accounting and record keeping,custodial safekeeping,clear delegation of authority,specific limitations regarding securities losses and remedial action,written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies,and code of ethics standards. 7.2.13. Performance Standards 7.2.13.1. The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles,taking into account the City's investment risk constraints,the cash flow characteristics of the portfolio,and State and local laws and ordinances that restrict investments. The City will report investment yield benchmarked to the yield of the 6- month Treasury Bill and/or the return provided by the State Investment Pool. 7.2.14. Reporting 7.2.14.1. The City Treasurer is charged with the responsibility of preparing a report on investment activity. 7.2.15. Distribution of Income 7.2.15.1. Interest income received shall be distributed monthly from the common portfolio to all participating funds based on the average cash balance included in the common portfolio for the earning period. 261 P a g Financial Policies Gty of Port Angdes 8. PURCHASING POLICIES 8.1. Goal 8.1.1. This document establishes guidelines and clarifies the policies for purchasing supplies and materials,and contracting for services by the City of Port Angeles. The City of Port Angeles dedicates itself to purchasing goods and services seeking maximum operational value thereby assuring the prudent and economical use of public monies. The purpose of this policy is to ensure that authorized personnel approve purchases in advance whenever possible,that expenditures are recorded electronically as soon as possible,to maximize internal controls without sacrificing efficiency,and to provide management with the ability to analyze purchasing patterns and cash flow requirements. It is not the intent of this policy to limit or prohibit contracting procedures or options authorized by State law. 8.2. Interpretation of this Policy. 8.2.1. The Chief Financial Officer shall be responsible for interpretation of this Policy. 8.3. Financial Information Provided to Council 8.3.1. Prior to any consideration for approval of a motion, resolution,or ordinance for City Council authorization to purchase or acquire any goods or services, including professional services and construction contracts,for the City of Port Angeles,the Council shall be provided with a Fiscal Note prepared by the Chief Financial Officer or designee that details the source and amount(s)of revenues proposed to pay for the purchase together with a budget for the acquisition. 8.3.1.1. The Fiscal Note is required to be included in the Agenda packet delivered to the Council prior to the meeting as well as the packet posted on the City's website. 8.3.1.2. No proposed acquisition of goods or services may be considered by the Council without the inclusion of a Fiscal Note designed to allow the City Council to make an informed decision on the particular issue at hand. 8.3.1.3. If the proposed acquisition of goods or services is part of a larger project,the Fiscal Note shall include the total budget for the project,the source of funding and a summary of all expenditures made prior to the proposed acquisition. 8.3.2. On a quarterly basis,the Chief Financial Officer shall provide Council with a written report and analysis of the City's Operating and Capital budgets. The report shall be provided by the 25th day following the end of the quarter unless the Chief Financial Officer has informed the City Council and City Manager of the need for a delay in the delivery of the report. In the message from the Chief Financial Officer informing the City Council and City Manager of the delay in providing the quarterly report,the Chief Financial Officer shall provide the reason for the delay together with the projected date for the delivery of the quarterly report. 8.3.2.1. The quarterly report shall be posted to the City website following delivery to the City Council. 271 P a g Financial Policies Gty of Port Angdes 8.4. Purchasing Policy Definitions 8.4.1. Approval Levels: Set by City Council,these are specific dollar levels of authorization for the approval of purchases and payments made on behalf of the City of Port Angeles as noted below. Purchase Amount Authorizing Official/Entity $0.01-$4,999.99 Department Director $5,000.00-$14,999.99 Department Director&Chief Financial Officer $15,000.00—24,999.99 City Manager, Department Director&Chief Financial Officer $25,000.00 or greater City Council+City Manager, Department Director& Chief Financial Officer 8.4.2. Any contract or agreement for the purchase of goods or services shall require authorizing signatures: Purchases of Less than$5,000: Purpose Authorizing Official/Entity Approval to purchase Department Director Purchases of Greater than$5,000 but less than$14,999.99: Purpose Authorizing Official/Entity Approval to Purchase Department Director Availability of Funds Department Director,Chief Financial Officer Purchases of Greater than$15,000: Purpose Authorizing Official/Entity Approval to Purchase City Manager Department Approval Department Director Availability of Funds Chief Financial Officer Approval as to Form City Attorney 8.4.3. Blanket Purchase Order(BPO): Otherwise known as an "Open Purchase Order,"a BPO is a purchase order used for purchases with local vendors or frequently utilized vendors. BPOs are created with a set dollar amount and are received and invoiced as purchases are made. BPOs are generally for items that are needed daily, but not always anticipated. BPOs are also used for annual agreements such as copier charges, maintenance agreements,etc. 8.4.4. Emergency Purchases: An emergency purchase is created by an urgent need affecting the health and safety of citizens,which requires immediate action,and where the occurrence or condition is"unforeseen." Lack of anticipation or planning cannot be deemed as a cause for declaring an emergency. 8.4.5. Field Purchase Order(FPO): FPOs can be used as a quick way to obtain goods or services. An FPO can also be used to request advance payments for legitimate business expenses such as travel,food, lodging,and conference fees. FPO's should not be used for purchases over$1,000 unless as specified in policy. 8.4.6. Purchase Order(PO): Computer generated numbered document used to authorize a vendor to ship merchandise or to perform services for a proposed price. POs are 281 P a g fl- JAA Financial Policies Gty of Port Angdes generated by a requisition,or documentation that has been approved at all required approval levels. With regular purchase orders,you must add the line item information describing the merchandise or services when you create them. With blanket purchase orders,you can add the line items when you receive or invoice them. 8.4.7. Requisition: A request to order goods that must be processed through approval levels before a purchase order can be generated. Funds are then pre-encumbered at this requisition phase of purchasing. Buyers then process items from approved requisitions onto purchase orders to selected vendors. 8.4.8. Sole Source&Single Source: A sole source can be a manufacturer,software developer or service provider that sells direct and there are no other sources offering an "equal" product or service. A single source could be a distributor/wholesaler/retailer that has a contractual agreement for a specific territory to the exclusion of others. 8.5. Policy Requirements 8.5.1. All employees making purchases on behalf of the City of Port Angeles shall maintain effective and professional public,vendor and customer relationships. Opportunity will be provided to all responsible suppliers to do business with the City of Port Angeles unless this purchase is required from a sole source. No official or employee will be interested financially in contracts or purchases entered into by the City of Port Angeles. 8.5.2. Most purchases will be processed with one of these options: 8.5.2.1. Requisitioned Purchase Orders(PO) 8.5.2.2. Blanket Purchase Order(BPO) 8.5.2.3. Field Purchase Order(FPO) 8.5.3. Finance will administer travel,credit card purchases, utility bills, phone charges,and petty cash in accordance with City policies and statutory requirements. 8.5.4. Authorization levels of purchases$5,000 and under will be determined by the Department Director. Each Department Director shall supply the Chief Financial Officer with departmental policy for individual authorization. Individuals authorized to approve requisitions for purchase orders will only have security set up for their level of approval and with those accounts as authorized. 8.6. Requisitioned Purchase Orders(PO) 8.6.1. Purchase Orders are created from an authorized requisition. Purchase Orders are for all purchases other than those authorized by blanket purchase orders and field purchase orders. All purchases for capital items,contracts that are subject to retainage,and inventory items need to be made with a purchase order. The requisition for purchase is processed and approved before the purchase is physically made, however this may not be the case in emergency purchases. With regular purchase orders,the line item must be added describing the merchandise or services from the authorized requisition. An authorized person creates the purchase orders,which includes: purchase order information,such as purchase order date,type,and buyer name;vendor information, such as vendor number, name,and terms;quantities of items ordered; unit cost of each item ordered;and inventory information for each item on the purchase order. 8.7. Blanket Purchase Order(BPO) 8.7.1. Approval levels established by policy are required as signatures on the Blanket Purchase Order(BPO) request form to authorize creation of a BPO. 291 P a g Financial Policies Gty of Port Angdes 8.7.2. BPOs are used for frequently purchased items from a frequently utilized vendor. BPOs are usually created at the beginning of the year with an annual anticipated dollar amount of expected purchases. Some department heads or directors may indicate the maximum dollar amount of a single purchase to be entered on a BPO. When a purchase exceeds the authorized maximum,a requisition/purchase order will need to be created for that purchase. The BPO request form includes a section to be completed authorizing the increase on a BPO when the initial balance requested is expended. On BPOs, line items are added as the items are received. 8.8. Receipt of Goods 8.8.1. When items are received from a vendor,the receipt is recorded against an open purchase order. Open purchase orders are purchase orders that are not canceled and still have items that are not fully received, invoiced,or both. All items on a purchase order can be received at once or individual items or quantities of an item received separately. The department that created the original purchase order is responsible to receipt all items on the purchase order. 8.9. FPO(Field Purchase Order) 8.9.1. An FPO can be used for smaller purchases that may be under$1,000, such as subscriptions, registrations,and routine budgeted transactions. All items previously posted to an account other than an expense account will be paid using an FPO. FPOs may also be used for larger transactions, insurance payments,debt redemption,other liabilities previously approved,and to request advance payments for legitimate business expenses. Contracts having retainage need to be processed using purchase orders. 8.10. Invoicing 8.10.1. Claims shall be processed for payment by the Finance Department after proper processing and receiving is completed at the department level. Invoices should be sent directly to the Finance Department from the vendor. All invoices should be complete with the following: (1) City purchase order number; (2) complete description of goods or service provided; (3)quantity; (4) unit prices and extensions; (5)discount terms; and (6) invoice number. 8.10.2. Adequate documentation will be attached to City payment vouchers to assure that it supports a valid, legally authorized purchase. Payments will be made only on original invoices. Properly prepared and approved requisitions, purchase orders,and receiving reports will be attached when applicable. 8.10.3. All City claims approved by the Departments are certifying that the materials have been furnished,the services rendered or the labor performed,and that the claim is a just,due and unpaid obligation against the City, prior to submitting the claim to the Finance Department for payment. 8.10.4. The department initiating the claim will be responsible for compliance and documentation for bid requirements, prevailing wages,approved change orders,and any additional statutory consideration related to the transaction. 8.11. Check Signing 8.11.1. To be valid,all checks in payment of claims must be signed by both the City Manager and the Chief Financial Officer. 8.12. Approval of Payment Claims 301 P a g Financial Policies Gty of Port Angdes 8.12.1. It shall be the duty of the Chief Financial Officer to present at each regularly scheduled meeting of the City Council,a list showing all claims paid and the date of payment to enable the City Council to make inquiry on any item appearing thereon. Upon satisfaction of such inquiry, if any,the City Council shall by motion approve the report of claims paid as a permanent record. 8.13. Contracts 8.13.1. The City Manager or his designee may sign contracts of less than$25,000. 8.13.2. The City Manager or his designee is authorized to enter into lease or rental agreements, provided the agreement does not obligate the City of Port Angeles in excess of$25,000 and the agreement is for a period that does not exceed one year. 8.14. Bidding Requirements 8.14.1. Purchases of supplies, materials and equipment or services other than architectural, engineering and land surveying services over$7,500 but less than $15,000 may be purchased after obtaining three written or telephone quotes. All purchases over $15,000,other than architectural,engineering and land surveying services,are required to go through a formal bidding process. 8.15. Lowest Responsible Bidder 8.15.1. Before award of a public works contract,a bidder must meet the following responsibility criteria to be considered a responsible bidder and qualified to be awarded a public works project. The bidder must: 8.15.1.1. At the time of bid submittal, have a certificate of registration in compliance with chapter 18.27 RCW; 8.15.1.2. Have a current Washington state unified business identifier number; 8.15.1.3. If applicable, have industrial insurance coverage for the bidder's employees working in Washington as required in Title 51 RCW; and employment security department number as required in Title 50 RCW;and a state excise tax registration number as required in Title 82 RCW;and 8.15.1.4. Not be disqualified from bidding on any public works contract under RCW 39.12.065(3). 8.15.2. Supplemental criteria: In addition to the bidder responsibility criteria in 8.14.1 above, when the City receives bids or quotes and it is necessary to determine the lowest responsible bidder,the following shall apply: 8.15.2.1. For a contract for purchase of supplies, material or equipment,the City may take into consideration the quality of the articles proposed to be supplied, their conformity with the specifications,and the times of delivery. 8.15.2.2. In determining"lowest responsible bidder", in addition to price,the following elements shall be given consideration: 8.15.2.3. The ability,capacity,and skill of the bidder to perform the contract; 8.15.2.4. The reputation, ability,experience,and efficiency of the bidder; 8.15.2.5. Whether the bidder can perform the contract within the time specified; 8.15.2.6. The quality of performance of previous contracts; 311 P a g Financial Policies ty of Port Angdes 8.15.2.7. The previous and existing compliance by the bidder with laws relating to the contract; 8.15.2.8. Tax revenue that the City would receive from purchasing the supplies, materials,or equipment from a supplier located within the City's boundaries, so that the purchase contract would be awarded to the lowest bidder after such tax revenue has been considered. The tax revenues that the City may consider include sales taxes that the City imposes upon the sale of such supplies, materials,or equipment,from the supplier to the City, provided that if the City considers such tax revenues that it would receive from the imposition of taxes upon a supplier located within its boundaries,the City shall also consider tax revenues it would receive from taxes it imposes upon a supplier located outside its boundaries; 8.15.2.9. If products are available that meet the contract specifications and requirements and that are made from recycled materials or may be recycled, whether the products are specified in the bid are made from recycled materials or may be recycled or reused; and 8.15.2.10. Other criteria applicable to the particular contract and provided in the invitation to bid. 8.15.3. Supplemental criteria for determining bidder responsibility, including the basis for evaluation and the deadline for appealing a determination that a bidder is not responsible, must be provided in the invitation to bid or bidding documents. 8.15.4. In a timely manner before the bid submittal deadline,a potential bidder may request that the City modify the supplemental criteria. The City must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. If the evaluation results in a change of the criteria,the City must issue an addendum to the bidding documents identifying the new criteria. 8.15.5. If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents,the City may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bid not responsive. 8.15.6. If the City determines a bidder to be not responsible,the City must provide, in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the City. The City must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible,the City may not execute a contract with any other bidder until two business days after the bidder determined to be not responsible has received the final determination. 8.15.7. Subcontractors. A public works contractor must verify responsibility criteria for each first tier subcontractor,and a subcontractor of any tier that hires other subcontractors must verify responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor,at the time of subcontract execution, meets the responsibility criteria listed in subsection A.and possess an electrical contractor license, if required by chapter 19.28 RCW,or an elevator contractor license, if required by chapter 70.87 RCW.This verification requirement,as well as the responsibility criteria, must be included in every public works contract and subcontract of every tier. 32 1 Pegs Financial Policies Gty of Port Angdes 8.15.8. The Director of Public Works and Utilities shall apply the criteria established in this section and determine whether a bidder is responsible. An appeal shall be heard and determined by the City Manager,whose decision shall be final. 8.16. Bid Inspection 8.16.1. Immediately after the award is made,the bid quotations obtained shall be recorded, open to public inspection,and available by written,telephonic,or electronic request. 8.17. Authority to Enter into Contracts, Leases or Rental Agreements 8.17.1. The City Manager or his designee is hereby authorized to enter into contracts and leases or rental agreements provided that the following conditions are met: 8.17.1.1. The contract does not obligate the City to expend in excess of$25,000. 8.17.1.2. The particular expenditure of City funds has been approved in the City Budget as approved by the City Council. 8.17.1.3. The lease or rental agreement is for a period that does not exceed one year and involves a total rental amount or value that does not exceed $25,000. As deemed appropriate by the City Manager,the City Council's Real Estate Committee may be consulted prior to executing any such lease or rental agreement. 8.17.1.4. The City Manager or his designee shall notify the Council in writing of contracts entered into pursuant to this section. 8.18. Small Purchase Contracts 8.18.1. Whenever the reasonably anticipated purchase price of supplies, material and equipment,except for public work or improvement, is more than $7,500 but less than $15,000.00,advertisement and formal sealed bidding for the purchase may be dispensed with if the uniform procedure provided in RCW 39.04.190 and in this section is followed. 8.18.2. At least twice per year,the City Clerk shall publish in a newspaper of general circulation within the City a notice stating the existence of vendor lists and soliciting the names of vendors for the lists. 8.18.3. Each City department that desires to award contracts for the purchase of supplies, material or equipment pursuant to this process shall do the following: 8.18.3.1. Obtain at least three written or telephone quotations from different vendors of the supplies, material or equipment to be purchased. 8.18.3.2. Transmit the quotes to the City Manager or designee,accompanied by a recommendation for award of the purchase contract to one of the vendors, who shall be the lowest responsible bidder as defined in RCW 43.19.1911 or elsewhere in these policies. 8.18.3.3. If less than three quotes are obtainable due to factors beyond the control of the department,the recommendation to the City Manager or designee shall be accompanied by an explanation of the reasons for the lower number of quotes. 331 P a g Financial Policies Gty of Port Angdes 8.19. MRSC Rosters 8.19.1. The City has contracted with and hereby is authorized to use the Municipal Research and Services Center of Washington (MRSC)for the City use of state wide electronic databases for small works rosters and consulting services developed and maintained by MRSC. In addition, paper and/or electronic rosters may be kept on file by appropriate City Departments. 8.20. Small Works Rosters 8.20.1. The following small works roster procedures are established for use by the City pursuant to RCW 39.04.155: 8.20.1.1. Cost. The City need not comply with formal sealed bidding procedures for the construction, building, renovation, remodeling,alteration, repair,or improvement of real property where the estimated cost does not exceed $300,000,which includes the costs of labor, material,equipment and sales and/or use taxes as applicable. Instead,the City may use the small works roster procedure for public works projects as set forth herein. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process. 8.20.1.2. Publication. At least once a year,on behalf of the City, MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters. Responsible contractors shall be added to appropriate MRSC roster or rosters at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a small works roster. 8.20.1.3. Telephone or written quotations. The City shall obtain telephone,written or electronic quotations for public works contracts from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to a contractor who meets the mandatory bidder responsibility criteria in Section 8.14 of this policies. 8.20.2. A contract awarded from a small works roster need not be advertised. 8.20.3. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However,detailed plans and specifications need not be included in the invitation. 8.20.4. Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative,quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted, in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster. "Equitably distribute" means that the City may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services. 8.20.5. If the estimated cost of the work is from$150,000 to$300,000,the City may choose to solicit bids from less than all appropriate contractors on the appropriate small works roster but must notify the remaining contractors on the appropriate small works roster 341 P a g Financial Policies Gty of Port Angdes that quotations on the work are being sought.The City has the sole option of determining whether this notice to the remaining contractors is made by: 8.20.5.1. Publishing notice in a legal newspaper in general circulation in the area where the work is to be done; 8.20.5.2. Mailing a notice to these contractors;or 8.20.5.3. Sending a notice to these contractors by facsimile or email. 8.20.6. At the time bids are solicited,the City representative shall not inform a contractor of the terms or amount of any other contractor's bid for the same project. 8.20.7. A written record shall be made by the City representative of each contractor's bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded,open to public inspection,and available by telephone inquiry. 8.20.8. Limited public works process. If a work,construction,alteration, repair,or improvement project is estimated to cost less than$35,000,the City may award such a contract using the limited public works process provided under RCW 39.04.155(3). For a limited public works project,the City will solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 39.04.010. After an award is made,the quotations shall be open to public inspection and available by electronic request. 8.20.9. For limited public works projects,the City may waive the payment and performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW,thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen,suppliers,and taxes imposed under Title 82 RCW that may be due from the contractor for the limited public works project. However,the City shall have the right of recovery against the contractor for any payments made on the contractor's behalf. 8.20.10. The City shall maintain a list of the contractors contacted and the contracts awarded during the previous 24 months under the limited public works process, including the name of the contractor,the contractor's registration number,the amount of the contract,a brief description of the type of work performed, and the date the contract was awarded. 8.20.11. Award.All of the telephone bids or quotations shall be collected and presented at the same time to the Council for consideration,determination of the lowest responsible bidder,and award of the contract. 8.21. Consulting Services Rosters 8.21.1. Consulting services. Consulting services are professional services that have a primarily intellectual output or product and include architectural and engineering services as defined in RCW 39.80.020. 8.21.2. Publication. At least once a year,on behalf of the City, MRSC shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the consulting services roster or rosters and solicit statements of qualifications from firms providing consulting services. Such advertisements will include information on how to find the address and telephone number of a representative of the City who can provide further details as to the City's projects needs for consulting services. Firms or persons 351 P a g Financial Policies Gty of Port Angdes providing consulting services shall be added to appropriate MRSC roster or rosters at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a consulting services roster. 8.21.3. Professional architectural and engineering services. The MRSC Rosters will distinguish between professional architectural and engineering services as defined in RCW 39.80.020 and other consulting services and will announce generally to the public the City's projected requirements for any category or type of professional or other consulting services. The City reserves the right to publish an announcement on each occasion when professional services or other consulting services are required by the agency and to use paper and/or other electronic rosters that may be kept on file by appropriate City departments. 8.22. Public inspection of purchase,small works roster,or limited public works awards 8.22.1. Each department that makes an award for a purchase contract under the informal bidding process in section 8.14 of this chapter shall provide the City Clerk with the name of the contractor or vendor awarded the contract,the amount of the contract,a brief description of the type of work performed or items purchased under the contract,and the date it was awarded. 8.22.2. The City Clerk shall post a list of the contracts awarded under section 8.17 of this chapter at least once every two months.The lists shall contain the name of the contractor or vendor awarded the contract,the amount of the contract,a brief description of the type of work performed or items purchased under the contract,and the date the contract was awarded.The lists shall also state the location where the bid quotations for these contracts are available for public inspection.The quotations shall be available by written,telephonic,or electronic request. 8.22.3. Approval for change orders and amendments shall be granted in writing and signed by the officials noted below: GENERAL PURCHASING Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department Director—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00--$24,999.99 • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements Greater than$25,000.00 • City Council approval required • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements 361 P a g Financial Policies Gty of Port Angdes CONSULTANT CONTRACTS Note: Funding of any change orders must have been WITH ORIGINAL AWARD included in the original budget authorization approved GREATER THAN$25,000 by the City Council. If additional funds beyond the BUT LESS THAN$100,000 original budget are required,the City Council must approve the change order regardless of the amount. Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department Director—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00—$24,999.99 • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $25,000.00 or greater • City Council approval required • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements CONTRACTS FOR Note: Funding of any change orders must have been ARCHITECTURAL, included in the original budget authorization approved ENGINEERING OR LAND by the City Council. If additional funds beyond the SURVEYING WITH ORIGINAL original budget are required,the City Council must AWARD GREATER THAN approve the change order regardless of the amount. $25,000 BUT LESS THAN $100,000 Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 • Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department Director—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00—$24,999.99 • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $25,000 or greater • City Council approval required • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements PUBLIC WORKS Note: Funding of any change orders must have been included in the original budget authorization approved 37 1 Pegs Financial Policies Gty of Port Angdes CONSTRUCTION by the City Council. If additional funds beyond the CONTRACTS WITH original budget are required,the City Council must ORIGINAL AWARD approve the change order regardless of the amount. GREATER THAN$25,000 BUT LESS THAN$100,000 Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 . Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department Director—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements $15,000.00—$24,999.99 • City Manager—authorizing official or 25%of the original . Department Director—requesting official contract award, . Chief Financial Officer—as to availability of whichever is less funds&compliance with policy requirements $25,000 or greater • City Council approval required • City Manager—authorizing official • Department Director—requesting official • Chief Financial Officer—as to availability of funds&compliance with policy requirements Note: The City Council may grant specific additional authority to the City Manager as part of the original contract award approved by the City Council. PUBLIC WORKS Note: Funding of any change orders must have been CONSTRUCTION included in the original budget authorization approved CONTRACTS WITH by the City Council. If additional funds beyond the ORIGINAL AWARD original budget are required,the City Council must GREATER THAN$100,000 approve the change order regardless of the amount. Total of All Change Order Authorizing Signatures &Amendment Amounts $0.01--$4,999.99 . Department Director(or as delegated in writing to Finance Department) $5,000.00--$14,999.99 • Department Director—authorizing official • Chief Financial Officer—as to availability of funds&compliance with policy requirements 25%of the original • City Manager—authorizing official contract authorization not • Department Director—requesting official to exceed$99,999.99, • Chief Financial Officer—as to availability of whichever is less funds&compliance with policy requirements Greater than 25%of the • City Council approval required original contract . City Manager—authorizing official authorization or$100,000 . Department Director—requesting official or more . Chief Financial Officer—as to availability of funds&compliance with policy requirements 38 1 P Financial Policies Gty of Port Angdes Note: The City Council may grant specific additional authority to the City Manager as part of the original contract award approved by the City Council. 8.22.4. For all contracts,service agreements and professional service agreements,the City Manager or designee may authorize and approve change orders or amendments that only extend the time for performance or only change the procedure for administering the contract or agreement where there is no substantial change in scope or increase in the cost of the contract or agreement. 8.23. Change orders on construction contracts and amendments to professional service agreements 8.23.1. Upon subsequent approval by the City Council of a single or collective series of change orders requiring Council approval,the approval threshold shall be re-set based on the most recent Council—approved contract amount as the starting point. 8.23.2. When approval occurs by the City Manager or respective department head for change orders or professional services agreement amendments according to the conditions stated above,they shall notify the City Council of the change order or amendment in the next bi-monthly contract status report submitted to City Council. 8.24. Definition of credit card 8.24.1. As used in this chapter, "credit card" means a card or device issued under an arrangement pursuant to which the issuer gives to a cardholder the privilege of obtaining credit from the issuer. 8.25. Issuance,use and control of credit cards 8.25.1. The City Council hereby adopts the following system for the issuance, use and control of credit cards by City officials and employees: 8.25.1.1. The Finance Department shall implement the following system for the distribution,authorization,control,credit limits and payment of bills related to the use of credit cards by City officials and employees: 8.25.1.1.1. Distribution. Credit cards will be distributed to those City officials and employees who have job responsibilities which would be facilitated by the use of a credit card and the credit card use would benefit the City. This shall include the City Council, City Manager, Department Heads, Division Managers, and other officials and employees as determined by the City Manager. 8.25.1.1.2. Authorization and control. The Finance Department shall develop the implementation guidelines and accounting controls to ensure the proper usage of credit cards and credit card funds. 8.25.1.1.3. Credit limits. The Finance Department shall set credit limits on each credit card issued. The credit limit shall not exceed$2,500 without written approval of the City Manager. 8.25.1.1.4. Payment of bills. The Finance Department shall establish and implement a written procedure for the payment of all credit card bills. 8.25.1.1.5. Unauthorized charges. No employee shall use the City-issued 391 P a g Financial Policies ty of Port Angdes credit card for non-City business use. Any employee who violates this policy by using a City-issued credit card for non-City business shall be subject to disciplinary action and shall be billed for all charges on the credit card. The City Manager or his/her designee is authorized and directed to make payroll deductions to recover any unauthorized charges. 8.25.1.1.6. Cash advances. Cash advances on credit cards are prohibited. 8.25.2. The Finance Department is authorized to adopt any additional procedures or policies necessary to implement the provisions of this section. 40 1 P Financial Policies Gty of Port Angdes 9. POST ISSUANCE COMPLIANCE FOR GOVERNMENTAL BONDS 9.1. Scope: 9.1.1. This Post Issuance Compliance Policy addresses the City of Port Angeles,Washington's (the"City")compliance with federal tax,federal securities and state law requirements and contractual obligations applicable to the City's tax-advantaged governmental bond issues. The Post Issuance Compliance Policy applies generally to all of the City's tax- exempt governmental bonds,and other bonds subject to comparable requirements, such as taxable direct-pay bonds. As used in this Post Issuance Compliance Policy, references to "bonds" include bonds, lines of credit, bond anticipation notes,and equipment and other financing leases. 9.2. Purpose: 9.2.1. This Post Issuance Compliance Policy is intended to improve the City's ability to: 9.2.1.1. Prevent violations in bond requirements from occurring in the first place, 9.2.1.2. Timely identify potential violations,and 9.2.1.3. Correct identified violations through appropriate remedial steps. 9.3. Schedule of Review: 9.3.1. The Post Issuance Compliance Policy is to be reviewed at least annually and upon each issuance of new bonds, including refunding bonds. In connection with this periodic review,the Chief Financial Officer will consider whether the Post Issuance Compliance Policy should be amended or supplemented: 9.3.1.1. To address any particular requirements associated with the new bond issue, or 9.3.1.2. To reflect general changes in requirements since the prior bond issue. 9.4. Requirements at Bond Closing: 9.4.1. Numerous federal tax,federal securities,and state law requirements must be met in connection with a bond issue. In some circumstances(e.g., revenue bonds) rate and other covenant requirements will also need to be satisfied. These requirements are addressed in the bond transcript completed at bond closing,and confirmed in certain respects by the legal opinions included in the bond transcript. 9.5. Requirements after Bond Closing: 9.5.1. Other federal tax,federal securities law,and state law requirements and contractual obligations require on-going monitoring after the issuance of the bonds. 9.6. Officials or Employees Responsible for Review: 9.6.1. The following officers and employees of the City are identified as the responsible persons for reviewing compliance with the City's post-issuance obligations. Each responsible individual is to institute a calendaring system to track compliance with tasks in a timely manner. 9.6.1.1. Federal tax requirements, including arbitrage, use of proceeds, use of facilities and IRS filings: 9.6.1.2. Arbitrage, IRS Filings: Chief Financial Officer or as designated by Chief Financial Officer 411 P a g Financial Policies Gty of Port Angdes 9.6.1.3. Use of Proceeds: Chief Financial Officer or as designated by Chief Financial Officer 9.6.1.4. Use of Facilities: Department Director as designated by City Manager 9.6.2. Continuing disclosure requirements: 9.6.2.1. Annual Filing: Chief Financial Officer or as designated in writing by the Chief Financial Officer 9.6.2.2. Material Event Notices: Chief Financial Officer or as designated by Chief Financial Officer 9.6.2.3. Prior to filing each annual filing or material event notice,the Chief Financial Officer is to circulate the draft filing or notice to bond counsel or to the City Attorney for review. 9.6.3. The Chief Financial Officer is responsible for reviewing the other requirements under this policy. 9.6.4. The responsible persons identified above may need to confer,from time to time,with the City's bond counsel and/or financial advisor(if any)to confirm the applicability and scope of the requirements outlined in this policy. For reference,the contact information for these advisors is provided below: 9.6.4.1. Pacifica Law Group LLP,as bond counsel 9.6.4.1.1. Deanna Gregory at 206-245-1716 or Deanna.gregory @pacificalawgroup.com,or 9.6.4.1.2. Stacey Crawshaw-Lewis at 206-245-1714 or Stacey.Lewis @pacificalawgroup.com 9.6.4.1.3. Edward McCullough at 206-245-1727 or Edward.mccullough @pacificalawgroup.com 9.6.5. Training of the responsible official/employee. The City provides opportunities for training to the responsible individuals,specifically including the following training opportunities: 9.6.5.1. At or after bond closing,a conference call or meeting with bond counsel to review the requirements applicable to a new bond issue. 9.6.5.2. Identify other training activities, if applicable—such as participation in in- house training sessions,CPE seminars,or seminars conducted by professional organizations (e.g.,GFOA,WFOA,WMTA) 9.6.6. Records to be Maintained. The following documents are maintained in connection with each bond issue. The goal is to retain adequate records to substantiate compliance with federal tax,securities law,state law and other contractual requirements applicable to the City's bonds. Generally, records should be maintained for the term of the bonds (plus any refunding) plus four years. Unless otherwise specified,the following records are to be maintained in the office of the Chief Financial Officer. 9.6.6.1. Complete bond transcript(provided by bond counsel) in CD or hard copy. 9.6.6.2. Records of investment of bond proceeds in a format showing the date and amount of each investment, its interest rate and/or yield,the date any 421 P a g r_1 440 1 Financial Policies Gty of Port Angdes earnings are received and the amount earned, and the date each investment matures and if sold prior to maturity,the sale date and sale price. 9.6.6.3. Records of expenditure of bond proceeds in a format showing the amount, timing, and the type of expenditure. 9.6.6.4. Records of invoices or requisitions,together with supporting documentation showing payee, payment amount, and type of expenditure, particularly for projects involving multiple sources of funds. 9.6.6.5. Records necessary to document the allocation of bond proceeds and other sources of funds to particular projects or portions of projects. 9.6.6.6. Records documenting the final allocation of bond proceeds to projects, including any reallocations of bond proceeds, in a format showing the timing and substance of the reallocation, if applicable. 9.6.6.7. Records demonstrating compliance with arbitrage and rebate requirements, including arbitrage calculations,documentation of spending exceptions to rebate, rebate reports and IRS filings and payments. 9.6.6.8. Copies of contracts relating to the use of the bond-financed facility, including leases,concession agreements, management agreements and other agreements that give usage rights or legal entitlements with respect to the facility to nongovernmental persons(e.g.,advertising displays,cell tower leases,and naming rights agreements). 9.6.6.9. Copies of contracts relating to ongoing compliance with respect to the bonds. 9.6.6.10. Copies of any filings or correspondence with the IRS,the SEC or other regulatory body. 9.7. Investment of Bond Proceeds: 9.7.1. In general, bond proceeds and certain other funds can only be invested at a rate that exceeds the yield on the bonds under limited circumstances. Furthermore,amounts earned by investing above the bond yield must be rebated to the IRS, unless the City qualifies as a small issuer or a spending exception is met. The arbitrage and rebate requirements for each bond issue are detailed in the federal tax certificate. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)will monitor the investment and expenditure of the funds and accounts listed below. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)determines whether the bond issue meets the requirement for one of the expenditure exceptions to arbitrage rebate. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer) in consultation with bond counsel will determine whether a rebate calculation is necessary and, if so,will perform the calculation or engage a rebate consultant. The Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer)will arrange for the payment of any required rebate to the IRS together with the appropriate IRS form on the dates described below. 9.7.1.1. Funds to Monitor. 9.7.1.1.1. Bond or debt service funds/accounts 43 1 Pegs r_1 440 1 Financial Policies Gty of Port Angdes 9.7.1.1.2. Project or construction funds/accounts 9.7.1.1.3. Debt service reserve funds/accounts 9.7.1.1.4. Other accounts with bond proceeds or amounts pledged to pay bonds 9.7.1.2. Arbitrage Reports; Rebate May Be Due. 9.7.1.2.1. During construction, monitor expenditures to confirm satisfaction of expected exception to rebate(such as six month exception, 18 month exception,24 month exception) 9.7.1.2.2. The first rebate payment is due five years after date of issue plus 60 days 9.7.1.2.3. Rebate is due every succeeding five years if there are unspent gross proceeds of the bonds 9.7.1.2.4. Final rebate payment is due 60 days after early redemption or retirement of the bonds 9.7.1.3. Limitations on Type of Investments. Bond proceeds must be invested as permitted under state law. In addition,the bond ordinance or any bond insurance agreement may further limit the permitted investments. To monitor compliance with these investment restrictions,the City invests bond proceeds in the State Local Government Investment Pool as well as other investments authorized by the City's Investment Policy and Washington State law. 9.7.1.4. Use of Bond Proceeds During the Construction Period. 9.7.1.4.1. Monitoring the expenditure of bond proceeds is necessary to assure that the required amount of bond proceeds are expended for capital expenditures and that not more than 10% of the bond proceeds are expended for projects that will be used for in a private trade or business(including by the federal government and nonprofit entities). 9.7.1.5. The Chief Financial Officer is responsible for reviewing the transcript for the bonds,and in particular,the authorizing documents and the federal tax certificate,as well as invoices and other expenditure records to monitor that the bond proceeds are spent on authorized project costs. 9.7.1.6. If,at the completion of the project,there are unspent bond proceeds,the Chief Financial Officer,conferring with bond counsel,will direct application of the excess proceeds for permitted uses under federal tax law,state law, and bond authorization documents. 9.7.1.7. If the project involves bond proceeds and other sources of funds and included both governmental and nongovernmental use of the financed facilities,the Chief Financial Officer will undertake a final reconciliation of bond proceeds expenditures with project costs no later than 18 months after the later of the date of expenditure or the date that the project is placed in service(but in no event more than five years after the date of issue). 441 P a g Financial Policies Gty of Port Angdes 9.8. Use of Bond-Financed Facilities: 9.8.1. Monitoring(and limiting)any private use of the bond-financed facility is important to maintaining the federal tax treatment of governmental bonds. In general, no more than 10%of the bond-financed facility can be used in a private trade or business(including by the federal government and nonprofit entities). Private use can arise through any of the following arrangements,either directly or indirectly. 9.8.2. Types of Private Use 9.8.2.1. Selling all or a portion of the facility 9.8.2.2. Leasing all or a portion of the facility 9.8.2.3. Entering into a management contract for the facility(except for qualified management contracts under IRS Rev. Proc.97-13) 9.8.2.4. Use of all or a portion of the facility for research purposes under a research contract(except for qualified research contracts under IRS Rev. Proc.97-14) 9.8.2.5. Entering into contracts giving"special legal entitlement"to the facility(for example,selling advertising space or naming rights) 9.8.3. Procedures for monitoring private use; procedures reasonably expected to timely identify noncompliance. 9.8.3.1. All leases and other contracts involving bond-financed property will be sent prior to execution to the Chief Financial Officer for review. 9.8.4. Procedures ensuring that the City will take steps to timely correct noncompliance. 9.8.4.1. If the City takes official action to sell, lease or otherwise change the use of bond-financed facilities to private use,action should be taken under Treas. Reg. § 1.141-12 within 90 days to apply net proceeds of the sale or lease of the facility to other qualifying capital expenditures or to redeem or defease bonds. Upon a determination that there has been or could be a change in use of a bond-financed facility under the monitoring procedures described above,the Chief Financial Officer shall consult with bond counsel and apply net proceeds of the change in use as required. 9.9. Continuing Disclosure: 9.9.1. The City is required to make annual filings with the Municipal Securities Rulemaking Board ("MSRB")as described in the continuing disclosure undertaking for each bond issue(which may include tax-exempt or taxable bonds),and to file notice of certain material events. 9.9.1.1. Submissions will be made in electronic form through the MSRB's web-based system known as Electronic Municipal Market Access("EMMA"),currently available at http://www.emma.msrb.org. Submissions will be made in word- searchable PDF. 9.9.1.2. Annual filings to be made: 9.9.1.2.1. Financial information and operating data about the City included in the Official Statement for the bonds 9.9.1.2.2. Change in fiscal year;other information described in the continuing disclosure undertaking 451 P a g Financial Policies Gty of Port Angdes 9.9.1.2.3. Audited financial statements 9.9.1.2.4. These reports must be filed no later than nine months(e.g. September 30)for the majority of the City's bonds,and seven months(e.g.July 31)with respect to one issue,after the end of the City's fiscal year(the City's fiscal year currently ends December 31) 9.10. Material event notices: 9.10.1. The City is required to provide or cause to be provided to the MSRB, in a timely manner, notice of certain events with respect to the bonds. Amendments to SEC Rule 15c2-12 (the"Rule") in 2010 expanded the list of events requiring disclosure and added a 10-day compliance period for undertakings effective after December 1,2010. 9.10.2. Generally, if any of the following events occur,the City shall provide,or cause to be provided,to the MSRB, in a timely manner not in excess of ten business days after the occurrence of the event, notice of the occurrence of the any of the following events with respect to the bonds: 9.10.2.1. Principal and interest payment delinquencies 9.10.2.2. Non-payment related defaults, if material 9.10.2.3. Unscheduled draws on debt service reserves reflecting financial difficulties 9.10.2.4. Unscheduled draws on credit enhancements reflecting financial difficulties 9.10.2.5. Substitution of credit or liquidity providers,or their failure to perform 9.10.2.6. Adverse tax opinions,the issuance by the IRS of proposed or final determinations of taxability, Notices of Proposed Issue(IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the bonds,or other material events affecting the tax status of the bonds 9.10.2.7. Modifications to the rights of bondholders, if material 9.10.2.8. Bond calls, if material,and tender offers 9.10.2.9. Defeasances 9.10.2.10. Release,substitution,or sale of property securing repayment of the Bonds, if material 9.10.2.11. Rating changes(both upgrades and downgrades) 9.10.2.12. Bankruptcy, insolvency, receivership or similar event of the City 9.10.2.13. The consummation of a merger,consolidation,or acquisition involving the City or the sale of all or substantially all of the assets of the City,other than in the ordinary course of business,the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions,other than pursuant to its terms, if material 9.10.2.14. Appointment of a successor or additional trustee or the change of name of a trustee, if material 9.10.3. Procedure for ensuring that notice of the above events is provided to the responsible individual(s) identified above: Chief Financial Officer(or the City Treasurer if assigned the responsibility in writing by the Chief Financial Officer) 461 P a g Financial Policies ty of Port Angdes 9.10.4. Periodic check of information regarding bonds on EMMA. Periodically and at least prior to each new bond issue,the City will search EMMA for its continuing disclosure filings to confirm proper filings have been made. 9.11. Compliance with Bond Covenants: 9.11.1. Particularly for revenue bond issues,the City has made rate and other covenants for the benefit of bond owners. The City monitors compliance with these bond covenants on an annual basis,as part of its annual audit process. These covenants are summarized below: Covenant Requirement Document;Section Timing Rates Insurance Sale or disposition of property Debt Service Reserve Fund Balance 9.11.2. Other Reports. Under the terms of bond insurance policies, letter of credit reimbursement agreements,debt service reserve surety agreements,financing agreements, loan agreements,and remarketing agreements,the City may be required to send copies of budget,disclosure and other documents as well as notice of the issuance of additional bonds,events of default, redemptions or defeasances,or amendments to the bond documents. The following entities are required to receive copies of the following documents or notices. Entity Type Name/Contact Document;Section Requirement Timing Bond Insurer Letter of Credit Bank Underwriter/Remarketing Agent Bank 47 P a g e YNORT NGELES F I ll� == W A S H I N G T O N, U. S. A. �w_ env CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: BYRON OLSON, CHIEF FINANCIAL OFFICER SUBJECT: AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS;AND AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF SOLID WASTE UTILITY REVENUE BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO FUND THE RESERVE ACCOUNT, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS Summary: There are two separate bond ordinances before Council this evening related to the Solid Waste Landfill Bluff Stabilization project. By utilizing a combination of a Limited Tax General Obligation (LTGO)bond issue and a Revenue bond we can minimize debt service for this project. In preliminary planning for this project, the City sought to gain County Commissioner approval for the imposition of flow control in unincorporated eastern Clallam County. Unfortunately, the H - 1 Staff Report to the City Council 2014 Solid Waste Limited Tax General Obligation Bond+Revenue Bond Ordinances Page--2— City was not successful in gaining the support of the Clallam County Commissioners on that point. The City of Port Angeles has already adopted flow control. In addition, we were hopeful that the City of Sequim would also adopt flow control as part of our joint efforts to address this regional problem, but they did not. We are recommending that Council authorize issuance of up to $9,200,000 in LTGO bonds that have the security of having General Fund taxes to guarantee repayment—the actual debt service will be paid by utility rates from the Solid Waste System. In addition, we are recommending that Council authorize the issuance of up to $9,200,000 of debt would be sold as Revenue Bonds backed solely by the revenues of the Solid Waste Fund. Recommendation: Conduct a first reading on both ordinances and set over for final reading and adoption at the June 3, 2014 meeting. Background/Analysis: We have prepared a PowerPoint presentation for the May 20 Council meeting to provide a more comprehensive overview regarding issuance of bonds and the complexities of this particular issue. The City has been working on the funding aspects of this issue for nearly a year. Due to the complexity of the issue and the desire to engage both Clallam County and the City of Sequim made for a number of starts and stops along the road. The finance team has reviewed issues ranging from taxability of the bonds, questions of capital improvement versus maintenance and operations, debt structure, term of the bond issue,potential to secure bond insurance, and the effect of the debt repayment on future Solid Waste Utility Rates. For this project, our bond finance team consisted of: • City of Port Angeles: • Byron W. Olson, Chief Financial Officer • TrinaNevaril, City Treasurer • Heidi Greenwood, Sr.Assistant City Attorney • Financial Advisor(A. Dashen &Associates): • Alan Dashen • Scott Bauer • Bond Counsel(Pacifica Law Group): • Deanna Gregory • Stacey Crawshaw-Lewis • Underwriter(Piper Jaffray): • Lindsay Sovde • Justin Mon Wai • Underwriter's Counsel(Foster Pepper): o Marc Greenough • Utility Rate Consultant(FCS Group) • Angie Sanchez • Sergey Tasarov H - 2 Staff Report to the City Council 2014 Solid Waste Limited Tax General Obligation Bond+Revenue Bond Ordinances Page--3— As was done in the 2013 Revenue Bond refunding issue approved by Council last year, the ordinances before you are "delegation" ordinances whereby the City Council delegates authority to the Chief Financial Officer to structure the bond issue and interest rates within very strict parameters established by Council. When Piper Jaffray enters the bond market to sell our bonds to investors, we frequently find that the investors may need some small changes to planned maturities to meet their institutional investment requirements. The delegation ordinance allows the Chief Financial Officer limited flexibility to work with the underwriter to revise the planned offering to meeting the investor's needs while staying within the parameters established by Council. In Section 12 of the LTGO Bond Ordinance, the City designates that the bonds will be sold at a negotiated sale with Pipper Jafray who was selected through a Request for Proposal process. This section also provides that the City designates that the Chief Financial Officer has the authority to finalize the sale of the bonds so long as: (1) The aggregate principal amount of the Bonds does not exceed $9,200,000; (2) The final maturity date for the Bonds is not later than November 1, 2039; (3) The Bonds are sold in the aggregate at a price not less than 98%; and (4) The True Interest Cost(TIC) for the Bonds does not exceed 5.15% In Section 15 of the Revenue Bond Ordinance, the City designates that the bonds will be sold at a negotiated sale with Pipper Jafray who was selected through a Request for Proposal process. This section also provides that the City designates that the Chief Financial Officer has the authority to finalize the sale of the bonds so long as: (1) The aggregate principal amount of the Bonds does not exceed $9,200,000; (2) The final maturity date for the Bonds is not later than November 1, 2039; (3) The Bonds are sold in the aggregate at a price not less than 98%; and (4) The True Interest Cost(TIC) for the Bonds does not exceed 5.75% There are two separate bond ordinances before Council this evening: • Limited Tax General Obligation (LTGO) Bond Issue. Amount not to exceed $9,200,000. 25 Year Term. Security for the bond repayment is from a pledge of the City's full faith and credit including general fund taxes (property tax, sales tax, utility tax, etc.). In using approximately one-half of our outstanding statutory LTGO debt capacity, we can secure a lower overall interest cost for the project, reduce the funding required for the debt service reserve and achieve substantial savings for our utility rate payers both inside and outside of the City of Port Angeles. The City's General Fund will be re- paid for the costs of the debt service by rates collected by the Solid Waste Utility (similar to the way that the Electric, Water and Wastewater Utilities are paying for the debt service on the 2005 LTGO bond issue for the Western Urban Growth Area). • Revenue Bond Issue. Amount not to exceed $9,200,000. 25-Year Term. Security for bond repayment is from the revenue stream generated by Solid Waste Utility Rates. Had the City been able to achieve flow control, we estimate that ratepayers would have received a savings of$1,500,000 - $2,500,000 as a result of having a more secure revenue stream that would have produced an A- credit rating. Without flow control, we are now estimating a BBB+ credit rating on the Revenue H - 3 Staff Report to the City Council 2014 Solid Waste Limited Tax General Obligation Bond+Revenue Bond Ordinances Page--4— Bond. In addition, the Revenue Bond requires that we establish and fully fund a debt reserve account equal to the largest annual debt payment. This prefunded debt reserve will be used to make the final principal and interest payments in the last year of the bond issue. The total cost of the project and proposed funding plan is shown below: Project Costs:____ ____ ____ ___ _____ __AMOUNT, Pre-Design, Design, Permitting& Post-Design $3,364,057 Project Management 1,429,000 SCADA+ Fiber Optic Cable 140,000 __ ______ ___________ ___________ Construction 13,086,626 Contingency @_15% 1,962,994 ------WWWWSub-Total-Project-Costs_____________ ____________________ ____$19,982,677 ________________ __________ _________ Financing Costs: Cost of Issuance $210,470 _Underwriter's_Discount______ _1_13,330_ Capitalized Interest (6 months) ��� _���������� ���� 283,172 ---.Debt Reserve Account_(Revenue_Bond) 660,044 Sub-Total Financing Costs _ $1,267,016 Total Project Costs_____________________________ ____________________ ____$21,249,693 Project Funding Resources: FUNDING DoE Financial Assistance $3,999,100 CoPA Sales Tax from Project 82,110 Bond Proceeds: Par Amount 16,190,000 Net Premium/ OID 980,646 Sub-Total Resources $21,251,856 Less Total Project Costs ($21,7 ,6 Net Additional Proceeds $2,162 The Ordinances provide that the Chief Financial Officer is authorized to ratify and to deem final the preliminary Official Statement relating to the Bonds. The preliminary Official Statement is similar in many respects to a prospectus for a stock sale. The chart below gives you a brief snapshot of the costs associated with the proposed financing package in comparison to our projections of debt service costs if we have achieved flow control and costs without flow control. H - 4 Staff Report to the City Council 2014 Solid Waste Limited Tax General Obligation Bond+Revenue Bond Ordinances Page--5— ESTIMATED $17,605,000 $17,515,000 $16,220,000 Debt Service Without Flow Control With Flow Control Combination Costs 25-year Term 25-year Term LTGO+Revenue "BBB+"Rating "A-"Rating Year 1-5 $3,933,606 $3,600,760 $3,709,798 Year 6-25 29,825,269 28,653,131 27,665,950 Total $33,758,875 $32,253,891 $31,375,748 Estimated Savings WITH Flow Control $1,504,984 $878,143 =Additional Savings Due to LTGO+Revenue Bond Plan Average Annual Savings 60,199 35,126 =Average Annual Savings Average Monthly Savings 5,017 2,927 =Average Monthly Savings Average Daily Savings 165 96 =Average Daily Savings Savings due Ratepayers--Combination LTGO+Revenue Bonds $2,383,127 Average Annual Savings 95,325 Average Monthly Savings 7,944 Average Daily Savings 261 The bond market has a fair degree of volatility over the last few weeks and months. A stronger stock market reduces the attractiveness of bonds and forces interest rates to be higher to find prospective buyers. Domestic and international events can have the opposite effect on bonds — concerns over the state of the economy or adverse international political developments can send stocks much lower making bonds more attractive and lowering interest rates on the bonds. We will be seeking a bond rating from Standard & Poor's Rating Services and we are seeking quotes from two separate bond insurers for this financing. The schedule for our Solid Waste Financing is as follows: • May 20 First Reading of Delegation Ordinances (LTGO Bond+Revenue Bond) • May 22 Presentations to Rating Agencies &Bond Insurers • June 3 Final Reading/Adoption of Delegation Ordinances (LTGO Bond+Revenue Bond) • June 6 Receive Bond Rating • June 6 Finalize Preliminary Official Statement(POS) • June 9 Distribute/Post POS • June 11 Effective Date of Delegation Ordinances • June 18 Bond Pricing • June 24 Post Official Statement(OS) • July 2 Bond Closing At the meeting on May 201h Council meeting, we will have our Financial Advisor, Alan Dashen, present to help answer any questions Council may have as well as Bond Counsel, Deanna Gregory, who drafted the Ordinances and prepared the preliminary official statements. We would also anticipate some minor changes to the Ordinance between first and second readings as we refine the final numbers for the transaction. If you have any questions,please contact me so that I can get you the appropriate answer as quickly as possible. H - 5 FirrmNeadquarters $ervIng the Wesierm�S. ' ���7��� ������N�� *4� � �������/u RedmondTownCon�er and Comada sk�cel988 C*nsu|ho� 7525 }66m Ave NE Woxhiw0iom | 425.867]802 8u8eD-215 O(,,gun | 503BW)6543 Redmond Noshwg�om98O52 CoUonia | 415.445.8947 A|usko | 9072420659 May 20' 20l4 City Council City wf Port Angeles 32l ]B. Fifth Street Port Angeles, Yy/\ 90362 Subject: Consultant Financing Report, City of Port Angeles, CUaKlomm County, Washington, $0,095,000 Limited Tax General Obligation Bonds, 2014and $8,095,000 Solid Waste Utility Revenue Bonds, 2014, Aggregate Principal Ammwxuntmf$16,190,000 City Council: This report istu provide u summary of the projected fiuuuoia|iu5nooaduuvvi(hrnopooltotbcpcopomulhytbo City o[Port Angeles,Washington(the^^Ci<y"), to issue$D`095`000 Limited Tax General Obligation Bonds, 20l4 and$8.OV5,O00 Solid Waste Utility Revenue Bonds, 2Ol4 together referred ioay (the^`800da"). The Bonds are being issued: (a)to finance a portion of costs associated with improving and stabilizing the Port Angeles Landfill, (b)to fund the Reserve Fund, (c)to capitalize interest oo the Bonds, and(c)tu pay costs of issuance of the Bonds. PC5 GROUP was retained by the City to determine the financial capability of the City to meet the annual operating,maintenance, capital costs and debt repayment for the 2Ol4 through 20l9 time period.This report summarizes our work related to the City's rates and charges to the date hereof. Changed conditions occurring or becoming known after such date could affect the material presented herein to the extent of such changes. PCS GROUP ioiuoo way acting ioo municipal advisory capacity, nor providing au opinion ou(o the type of debt instrument,rating, interest rate or term that will be secured. Rather,FCS GROUP is evaluating the ooffioieooy of net revenue and debt service coverage requirements in the Solid Waste Utility System. AUTHORITY The Bonds are being issued pursuant to Solid Waste Utility Revenue Bonds Ordinance No. 3505 and Limited Tax General Obligation Bonds Ordinance No. 3506 of the City, adopted by the City Council on June 3, 20l4, (the ^^Ordioaocon"). � , May 2O` 20l4 City ofPort Angeles Consultant Financing Report page OVERV�W��V|�WJ �� �|�� �� ���� � ����| �� ��| |� WJ � ��� IEW L.!� � |�_ vv \�/| CITY� ��| PORT ��| ������~��~� ~��_/L~i�� WASTE �^�����k� � | � | L/v\ (��T�����H��T����� /` � � ^�����w�� . '��, ~ The City nf Port Angeles, Washington (the ^^Cityliu located ou Highway IOl inClalbam County on the north side of the Olympic Peninsula. The County occupies o long and narrow area io the most northwestern corner ofthe State. The County's western and northern boundaries are the Pacific Ocean and the Strait uf Juan de Fuca shorelines. Encompassing part o[the Olympic Peninsula, the County includes approximately 1,700 square miles of mostly forested and mountainous laud. The City io a major gutowuy tn the Olympic National Park and Vancouver, Island, Canada. Port Angeles in the headquarters o[The Olympic National Park which drovva approximately three million visitors each year. SERVI����U|y�� 1i ����� CE,���- , v�x�-/ ` The Solid Waste System im comprised oftwo operational oomyoueutx—zonideutiu) and commercial ooDeo(ioua within the City and transfer station operations. The City collects its own municipal solid waste from residential and commercial onatnnuuca located iothe City, and it 000truo|u for the ooUcotiuo of recycling, yard waste, and cardboard. Transfer station operations at the Port Angeles Regional Transfer Station (the ^^}(egiuoul Transfer Station") began in October 2006. The Regional 1,cuuotec Station provides regional transfer and export services for solid vvoete collected in the City, the City of Snqoico('^Sequinu"). and unincorporated areas o[the County. The City owns the Regional Transfer Stations. Most ofthe operations at the Regional Transfer 8{dioo and the Blue Mountain Transfer Station are provided hyWaste Connections through a 20-year agreement with the exception of the scale house, metal recycling area and decant facility, which is operated hythe City. F�EGOJAL TRANSFER STATION The Regional Transfer Station in located on 65 acre site near the Landfill, approximately three miles west of downtown Port Angeles. The Regional Transfer ia operated six days a week and receives uo average o[20Otons per day. This facility accepts municipal and commercial solid waste from commercial garbage trucks and commercial and residential self-haulers, and municipal solid waste disposed o[aithe Blue Mountain Transfer Station. The facility uses o compactor and chute method to load the long haul trailers to haul the municipal waste to the Roosevelt Regional Landfill. The Moderate Risk Waste Facility located at the Regional Transfer Station accepts approximately 50 tons n[residential household hazardous waste annually. This facility operates two days uwook. The waste iu processed, stored and later transferred for aute disposal or recycling. Oil and antifreeze is collected at designated area located outside the Moderate Risk Waste Facility and is taken by Waste Connections to a reuse site. The Regional Transfer Station also includes arcoyoUug center, a designated metal recycling area, and o compost facility. The recycling center accepts household recyclable items six days per week and collects approximately 900 tons of residential recyclable material annually. The metal recycling area accept appliances and scrap metal six days per week and receives approximately 600 tons annually from residential and commercial customers. �� F(-"S ("iROUP www.fcSg0up.000 May 2O, 2Ol4 City u[Port Angeles Consultant Financing Report page The Compost Facility is an outdoor feedstock yard and finished compost storage area. It accepts approximately 2,400 tons uf yard waste from the public and produces approximately 3,00O cubic yards of finished compost annually. The finished compost meets Washington State Department ofEcology regulations and O.8. Compost Council requirements. The finished compost ia sold to the public bythe City under the product name of"Garden (]lory.^" The Blue Mountain Transfer 8to(ioo` located approximately five miles outside ofthe City between the City and Soqnico, io owned by the County and operated by Waste Connections under the Service Agreement. The Blue Mountain Transfer Station has a capacity nfl,200 tons annually and operates three days per week. The Blue Mountain Transfer Station receives municipal solid vvunts, recycling, nil' and antifreeze from residential oomtouuoca. The zonoioipu) solid vvaotu is then transported to the Regional'Zrooa[ez Station, the recyclable material is taken to a recycling center located in Tacoma, nVnnbiugtoo, and the oil and antifreeze ia taken tou reuse site. As part of the Service Agreement with the City, Waste Connections hauls the municipal solid waste refuse from the Regional Transfer Station by truck and rail for final disposal at the Roosevelt Regional Landfill. This /oodfiU is located approximately 350 miles southeast from the City, in the eastern portion ofKUokitut County, near Roosevelt, Washington. The landfill iu owned by Republic Services, Inc. The landfill io permitted hyKliokdut County Department nt Public Health to receive up to 5.0 million tons of waste each year. If the Roosevelt Landfill were to close, Waste Connections would be obligated under the Service /\greuouond to deliver the waste to an identified alternative landfill. Long haul and disposal rates are per ton and are based on the cumulative tons delivered to the Roosevelt Regional Landfill. The current rate is $55.25 per ton. Rates are mohiec1 to u6600touczd uuuuaKy` homod on 68Y6of the Consumer Price Index (CPI) and 32% o[Fuel Price Index (pPI). Pursuant tothe Service Agreement, if tonnage drops below 38,000 tons/year, contract tonnage fees can be renegotiated. ����\ < ����T����� �����\/V����� M�}T��|�� T���� ��UT"� �������-�� / /��^ ~ ~,�-^� v /���~, r , / / � ^,, � � , `� ��' � / The City provides mandatory collection services for all residential cuotnozons located within the City. All refuse is placed in 90-gallon City-owned containers collected either weekly or every other week. The City provides mandatory collection service tocommercial customers who have water accounts located within the City. All refuse is placed in 300 gallon or 90-gallon City—owned containers collected six days a week. Both residential and commercial customers choose the level of service desired. The )urge commercial customers who choose to use roll off containers are serviced by Waste Connections. DooyuUog collection is offered to all City single-family dwellings opio four-plexatoo extra charge. The City collects aluminum, tin, and steel cans; paper, phone books, newspaper, corrugated cardboard, and chipboard; and certain plastics from residential oum\ozoeca. The {toe for recycling collections are built into the monthly residential rate utroo(oro. lltcyolub)oa are collected iu9h-gaUnocarts owned and serviced by Waste Connections. Curbside commercial recycling collection for cardboard iobuilt into the rates for garbage customers. Collections are based on the needs of the customers. Cardboard is placed in bins owned by Waste Connections. Upon request Waste Connections will also collect household recyclables (tin, u\uzuionon, glass, and paper) from commercial oua\ozoocu for collection fee. The recycle material is taken to the scales for tracking purpose then taken to a Waste Connection facility and prepared for transport toTacoma. Curbside pick-up of residential yard waste is available to all City residents for an additional obacXn. The yard waste is placed in 96 gallon containers owned and serviced by Waste Connections. Collection occurs �(�� �������TK� www.fcGg0uV.000 � _ _ _ GROUP ' May 2O' 2Ol4 City of Port Angeles Consultant Financing Report page every other week outhe mumc day as guchugc collection, tzoopt in the ozootba of December through February when collection is monthly. This material is taken To the Compost Facility. � �|� � f �� �����H�� ���dT ���/���� � � � /����|�v°\ � �J[� ��| | nr��~ IMPROVEMENT L~/v\��� � | | |��-�^~�[���/�� \ ��|i / ��| ��� �Ah]��(�J�� | \�/ ���!| ��� 1[ublo 1 summarizes the City's solid waste system related projects planocdbazconainmtiou1brouob20l9 as part of its ClP. The CIP includes projects nolutcdto: (l)the landfill stabilization project, (2)puut-clouuzoboocb nourishment and(3) collection truck purchases,replacements and modifications Table i: Svummary of Solid Waste System 20u4-20u9Capital Improvement Plan Regional Transfer Station Post-Closure Beach Nourishment $20,000 $20,000 $50,000 $50,000 $50,000 $50,000 $240,000 Subtotal Transfer Station $20,002,677 $20,000 $50,000 $50,000 $50,000 $50,000 $20,222,677 Collection System Truck Replacement and Modification 0 0 0 26,000 0 0 26,000 Subtotal Collection $0 $718,389 so $26,000 $0 $0 $744,389 Total Solid Waste System CIP $20,002,677 $738,389 $50,000 $76,000 $50,000 $50,000 $20,967,066 Total solid waste system COP projects bctvvoeu2Ol4 and 20l9total $20.9 million. The Landfill Project is scheduled iu20l4. Due to wave action along the shoreline the bluff near the Landfill has eroded resulting in failures of the bluff slope and refuse being deposited on the beach. The Landfill Project vvi)] iogp)uzuouta managed retreat of the Landfill away from the shoreline,which includes relocating refuse away froin the bluff, modifying, improving, and reinforcing the existing seawall; and making other improvements and betterments to the Landfill. 2015 capital costs total nearly$740,000. Approximately$700,UU0 relates\o the purchase oftwo trucks. The remaining four years of the solid waste system CIP are less than$100,000 per year. /��� �U��[��I� ���� ��y�T� ��,` " ��/ ����_�� , ,�����-�� n.� The City plans tn finance the CI9 from 2Ul4through 2019 through a combination offunding sources: grants, existing fund balances, regional transfer station rates, collection rates and Bond proceeds (including the Bonds referenced bezeiu). The primary project expected<ohepartially or fully funded by the Bonds is the Landfill Project. The solid vvuo(e system ia sustained hy three main funding sources: collection system rates, regional transfer system rates and other funding sources. w Collection system rates. Existing collection system customers are charged u monthly rate for service. 8ezvi000 include collection and disposal of municipal solid waste and may also include recycling and ��lFCS GRGUT-1 www.fcSgroDp.c01D May 2O, 2Ol4 City ofPort Angeles Consultant Financing Report page yard waste depending uu customer type. Tbomo charges are assessed to all customers inside the City (residential and commercial) * Regional transfer station rates. Existing regional transfer system rates are paid hyboth on\ieo(ioo ou1idem and self-haul 0001ozuoro. Charges are based ootonnage. ° Other funding sources. Other funding sources include miscellaneous fees and charges of the solid waste system including finished compost oa)ca and oa|ca of metal from the ruota| recycling area. Also included is funding from sources such as the Washington State Department ufEcology fiuouoiol aoyiatouco. �� Z1T�� � W[� CHARGES ,�, �, �`� , `/ ��� The City has historically reviewed utility rates every three years. The City completed acomprehensive utilities cost of service za1c study in 20I3. The 2013 study included a uouC of service study for the solid waste oyo(eoo. Both the regional transfer station system and the collection system were evaluated independently ooa self-supporting system. The study reviewed the operating and capital needs of each of the systems to determine if existing rates were sufficient\o support the total operating, capital improvement and fiscal policy needs of each of the systems. The establishment of rates for collection services (using City-owned and City-operated vehicles) is within the exclusive jurisdiction nf the City Council, subject tou requirement of State law that fair and nondiscriminatory rates must be fixed to produce revenue adequate to pay for operation and muiutouunoo and to meet all debt service requirements payable from such revenue. I]aood on the results of the 2013 study, on November 5` 2013, the City Council adopted its current rate ordinance which increased rates for the collection system hy 5.6% in 2014. Current collection system monthly rates are summarized in 7[uUlo %. Table 2. Current Monthly Collection Rates Residential-Weekly $32.17 Residential-Every Other Week $20.35 Residential-Yard Waste $8.40 Connnercial-90g $26.89 Coniniercial-300g $81.51 Schools -Recycling $13.80 Du(ea for regional Cruuo5uc station oyutocu operations are reviewed and recommended hythe Joint Solid VVuotn Advisory Board established under the Iu1crlocnl /\g7ccouen1` subject to City ConooU approval. Under the Iotedoco\ Agc0000ecd rates for disposal at the Regional Iruueter Station must be fair, reasonable and equitable and must apply equally to all parties {u the IotodocalAgreement. /\ separate fee structure has been established for the drop-box at the Blue Mountain Transfer Station to cover costs of operations at this site. Based on the ceauUa of the 20I3 oh/dy^ on November 5, 2013, the City Council adopted its current ou\c ordinance which increased rates for the regional transfer station system byuooverall increase ofl9.0Y6tu �� 17C S CAW 011 www.fc8g0lp.00lD , May 2O` 20l4 City o[Port Angeles Consultant Financing Ilonmrt page provide sufficient revenue for payment u[the principal aodiu1creatoudbcao1iciyated2Ul4Boodmueeded to complete the Landfill Project. Current transfer station rates are summarized in Table 3. Table 3- Current Regional Transfer Station Rates Tax rNempt Transfer Station: Collection Entities Municipal Solid Waste $139.13 Collection Entities Yard Waste $29.09 Biosolids $74.06 Self Haul Municipal Solid Waste $170.11 Tires $170.11 Asbestos $447.24 Contaminated Soils $237.76 Yard Waste $47.20 Metals and White Goods $72.29 Blue Mountain $237.40 �[l� � �����T ��� ���\/|/�� � �T� �TH[�\� H�[��T� ^��� , ~, �^��.� ^ ��/ SERVICE`���- /^/ ` ' �- ~� / y�� / UPDATE'` ' �- In 2014 the City updated the cost of service rate study to incorporate the updated budget, capital costs and debt financing aaouu`pdouo for both the coUoodoo system and regional buumfur station system. A five- year rate strategy was developed to cover the total operating, capital improvement and fiscal policy needs oF each o[the systems. The projected ra1um for the collection system and regional transfer station will include a onrobnrgc associated with the LuodfiU Project and related debt service. The surcharge is only charged to municipal solid waste and will remain in effect for the life m[the Bonds. 1[ublo 4 and Table 5 summarize the five-year rate increases adopted by Solid Waste Utility Rate Ordinance 3507 on June 3, 2014. Table 4. 2015-20ig Adopted Collection System Rates YIE"I""C' 11111191111,11111", 111111,3111111111111 Base Surcharge Base Surcharge Base Surcharge Base Surcharge Base Surcharge �� 1,'C'S JR 0 1 lP www.fc&g0up.c0oo 1. May 28, 20l4 City of Port Angeles Consultant Financing Report page / Table 5. 2015-20ig Regional Transfer System Rates Rise Surcharge Base Surcharge Base Surcharge Base Surcharge Base Surcharge Tax Fxempt Transfer Station: Collection Entities Municipal Solid Waste $139.13 $8.18 $141.91 $13.91 $144.75 $19.51 $147.65 $25.51 $1500 $31.93 Self Haut ��(� /���T��� ����� �Tik]�� ����UITS � ��������� � ���� ��� ����� � � �� ��� ����.����� �) The regional boumlero(u1ionoyotsmaodtbouollooiiouayotecoaro enterprise funds and as such are intended to recover all or a significant portion of the operating and capital improvement project cusia through user fees. The City updated the 20l3 cost of service rate study io February 2Ol4. Table muozuzurizeo the City's solid vvuote system projected operating results for CY20l4-20l9. The assumptions used io the report and the analysis of projected roveounauudouobDovvforCD/ FiouociuAood issuance of the Bonds is based on the following principal considerations and assumptions made by us and/or provided tonobyothers. * (}rovv{b. Collection system customer gzovv\b is zero percent in 2017-2019. The stated revenue incorporates an assumption that 2 percent of weekly residential service customers will switch to every other week service. Regional transfer station growth uuouzoeo a l percent per year reduction in tonnage from 2Ol4-20lg. The growth figoromwere developed based oo discussions with City staff and the current state of the economy. * Revenue from the noUeobou system rates and regional transfer station system are independently calculated. Collection system revenue ia based on existing and projected ouotocnozaocnuu1grop/tb. Regional transfer station revenue ia based ou the existing and projected 1ouoagopccvvugetype. ° Other non-rate revenue such as delinquent accounts recovered, environmental fees, compost sales, recycling revenue and change in service fees are based on budget 2014 figures. ~ Projections of general operating expenses were based on the 2014 budget with the exception of the service agreement with Waste Connections. ° Operating annual expense inflation iaprojected at 3.0 pozoecd for general escalation, 2.0 percent for labor inflation and 5.0 percent for hennfitoinflation. * Service agreement costs for collection are independently calculated based no the number nfprojected billing units and the applicable rates charged per the agreement with Waste Connections. Annual rates have been escalated per contract byo factor uf the Consumer Price Index uc the Fuel Price Index. Collection costs total $6I6,000 in 2014, escalating at 2.1 percent per year. Transfer station disposal costs for the collection system are identified separately and total nearly $1.3 million io2Ol4` oaoa|u1iog �*�� ������0�� wwnv.fcSg0up.CO0 � _ _ _ __- _ _ _ May 2O, 2Ul4 City of Port Angeles Consultant Financing Report page uu average o[4.4 percent through 20I9. The transfer station costs paid by the collection system for disposal includes the approved rate increases for 2015-2019. * Collection system operating costs fund $125,0004145,000 annually for replacement of packer trucks. * Service agreement costs for the regional transfer station are independently calculated based on the service component and rate per the contract with Waste Connections. The basis for annual rate escalation has been iduodfiediu the contract and increase bya factor nf the Consumer Price Index aod/ocu factor o[the Fuel Price Index. Contractual costs io2Ol4total $3.0 million escalating at 2.0 percent per year. ° The service agreement with Waste Connections includes auapital component related to the transfer station and cundozu1u risk waste facility. The total uuoua| capital component is approximately $753,000. + The solid waste system revenue ia subject 10 the state excise tax of3.b percent and the business & occupation tax ofl.50percent. City taxes are assessed nu collection revenue at |0Y6 and applicable transfer station revenue a{ 0percent. * Regional transfer station operating costs fund an average of$10,500 for replacement of fleet (in addition to the equipment fee included in the VVuate Connections contractual agreement). + Funds earnings rate used is 0.25 percent per year throughout the time period. ~ Collection system operating fund balance minimum io 90 days of operating expenses. Actual fund balance ranges from u low o[ll2 days u[operating expenses (oa high ofl77days. ° Ilogioou} transfer station fund balance uziuimoco is set at u Dzod azuono1 of$1.050 million. /\otou| operating fund balance exceeds the minimum target ranging from a low of$1.3 million to a high of$1.5 million through 2Ol9. * The County will iugpuuc and collect both collection system rates and regional transfer station rates for 2015 through 2019 at the rates adopted by the Council pursuant to Ordinance no. 3507 and as set forth in Table 4 and Table 5. � The true interest cost for the LTGO Bonds (in the aggregate) does not exceed 5.15 percent over the term of the bonds. * The true interest cost for the Revenue Bonds (in the aggregate) does not exceed 5.75 percent over the term o[the bonds. * The Bonds are amortized over a 25 year period beginning November 1, 2014 and mature no later than November l, 2039. ° The Bonds will be structured a* interest only payments through 20l0. * Interest on both the Limited Tax General Obligation Bonds and Revenue Bonds is payable semiannually each November l and May l, commencing November I, 2014. Full principal and interest payments for both bonds begin November l, 2Ol9. ° The aggregate principal amount o[the Bonds io $lO,l90,0O0. ~ Bonds include extraordinary optional redemption on maturities 2037 - 2039 for both series. Penalty assumed at0.25Y6. w Total debt service for the Bonds provided hy/\. Duabeo &c Associates. ������ �������T�� wwtv.fcGg0Vp.00nl ' May 20, 20!4 City of Port Angeles Consultant Financing Report page Table 6: Projected Operating Results for Calendar Year 2014-2019 Operating Revenue Transfer Station Rate Revenue[1] 5,871,519 6,120,882 6,380,836 6,651,830 6,934,333 7,228,835 Collection Misc. Revenue 5,000 5,000 5,000 5,000 5,000 5,000 Transfer Station Misc, Revenue 133,000 132,900 132,801 132,703 132,606 132,510 Total Operating Revenue $ 9,532,627 $ 9,976,485 $10,442,634 $10,932,273 $11,446,676 $11,917,174 Operating Expenses Collection System Operating Expenses[2] $ 3,631,659 $ 3,740,240 $ 3,863,565 $ 3,987,212 $ 4,115,682 $ 4246,666 Transfer Station Operating Expenses[2] 4,114,324 4,269,895 4,366,090 4,465,123 4,602,091 4,672,094 Balance Available for Debt Service and $ 1,938,044 $ 2,067,819 $ 2,313,410 $ 2,579,786 $ 2,828,457 $ 3,098,335 Other Put-poses Outstanding Parity Obligations Capital Component of Service Agreement 753,345 753,345 753,345 753,345 753,345 753,345 Total Outstanding Parity Obligations $ 753,345 $ 1,175,438 $ 1,175,438 $ 1,175,438 $ 1,175,438 $ 1,410,438 Balance Available for Other Purposes $ 1,184,699 $ 892,381 $ 1,137,971 $ 1,404,347 $ 1,653,018 $ 1,687,896 Debt Set-vice Coverage 2.57 1.76 1.97 2.19 2.41 2.20 Non-Operating Transfer [0 Includes total revenues and approved zow-2o/9rate in^reuvm o^xeuiov system overall annual rate increases include»a percent inm/4'zn/o and 4opercent in 2019,Regional Transfer Station Rates include overall annual increases of 19 percent in 2014 and 5.3 percent in 2015-2019. [e] Includes operating costs plus contractual costs forcollection system(collection and disposal)and regional transfer station contractual costs(operations,disposal,transport and equipment lease).Eoludes City taxLs and depreciation expense. [s] Includes delinquent interest,interest unm^pvm/ing fund and interest ommovmreserve. [4] Contributions inchides tunding fiomthe Washington State Department of Fcology related to the handling of household Moderate Risk Solid Waste. [s] Includes debt service o"the mw Revenue o^ouo. Interest only through mm`full principal and interest November/^zom� yg u0000m the annual principal and interest requirements for zowcrooBonds. Interest only through uo|x.full principal and interest November/.uow. For Illustrative purposes only,such revenue is not pledged under the ordinance for the LTGO bonds. �� ������� �������7� www.feagr0up.c00 * _ _ _ __-_ _ _ May 20, 2014 City of Port Angeles Consultant Financing Report page 10 COMPARISON OF CITY RATESTO OTHER RATES IN RK'7' 101'�"l A comparison of the current collection system rates and regional transfer system rates in the region is provided in Table 7 and Table 8. Table 7: Comparison of Collection System Rates Tacoma $105,12 Mount Vernon ....... .............. $61.81 Vancouver $60.56 Oak Harbor Enumclaw $53.21 Port Townsend $49.03 Sequim ............. $43,83 Aberdeen $41.70 Port Angeles-2014 $40.57 Bremerton ...... $34.78 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Comparison isfior 90-96 gallon weekly set-vice, including yard waste. Table 8: Comparison of Regional Transfer Station Rates Blue Mountain SH-2014 PA Self Hauler-2014 $170.11 West Waste Self Hauler $169.00 Jefferson County Self Hauler $144.00 PA Collection Entities-2014 $139.13 King County $129.40 Island County Self Hauler $119.14 Grays Harbor Self Hauler $93.25 Mason County Self Hauler $87.96 Olympic View Self Hauler $65.00 $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 CS '1�41", CROUP www.fcsgroup.com % I�_ _j ^ May 20, 20l4 City o[Port Angeles Consultant Financing Report page 11 PRINC��i��y�}� � U /�/�N������ ��|/�W� IPAL��K� ���-�( �.�|����k��� | |�~ | ��� The analysis contained herein relies upon the City's CAFR,budgets, fee schedules, CIP and other appropriate sources. We have used and relied upon certain information and assumptions provided to us by sources that we believe to be reliable. FCS GROUP,however, cannot and does not assume responsibility for the accuracy of such reference material. Moreover, forecasts and projections areuohieottoouuuyDdoceuuoedaiu1iea;dhcrotbco, FCS (]R{)|Jp has made certain assumptions with respect to conditions that may occur iuthe future. We believe that use of such information and assumptions is reasonable for the purposes of this report. However,we cannot and du not guarantee that the projected finauciu|porfhuuaoocwU|reOeoitheuotualromultm. OocucaomuoU,douu will invariably not materialize uu stated herein or will vary significantly due to unanticipated evoo{o and circumstances. Therefore,the actual results can hn expected Co vary somewhat from those projected. FCS GROUP has endeavored to include appropriate comments to draw the reader's attention to matters of risk or uncertainty io the projections cootuiuodiotbecmpod. /—���|�]|���]/� ��| || �\��| �~� Based on our analyses and studies and the considerations and assumptions set forth in this report, we are of the opinion that: (l) The City has adequate solid waste system Net Revenue available for debt service of at least equal to 125 percent o[the annual debt service for the period u[2Ui4 through 20lV. (2) The assumptions used iu developing revenue and cost projections auezeoounab|u. Sincerely, FCSBQO(JP 1 ' Angie Sanchez\7irooche`Principal �� CITY OF PORT ANGELES, WASHINGTON SOLID WASTE UTILITY REVENUE BONDS, 2014 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF SOLID WASTE UTILITY REVENUE BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO FUND THE RESERVE ACCOUNT, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. PASSED JUNE 3, 2014 PREPARED BY: PACIFICA LAW GROUP LLP Seattle, Washington H - 6 CITY OF PORT ANGELES, WASHINGTON ORDINANCE NO. TABLE OF CONTENTS* Page Section 1. Definitions and Interpretation of Terms...................................................................2 Section 2. Adoption of Plan of Additions and Betterments....................................................13 Section 3. Authorization and Description of Bonds ...............................................................15 Section 4. Registration, Exchange and Payments...................................................................15 Section 5. Redemption; Purchase of Bonds............................................................................20 Section6. Form of Bonds .......................................................................................................24 Section7. Execution of Bonds................................................................................................26 Section 8. Application of Bond Proceeds ...............................................................................27 Section 9. Revenue Fund; Priority of Application of Revenue; Rate Stabilization Account..................................................................................................................28 Section 10. Bond Account; Debt Service Account; Reserve Account......................................30 Section 11. Covenants and Agreements....................................................................................34 Section12. Tax Covenants .......................................................................................................37 Section13. Defeasance.............................................................................................................39 Section 14. Issuance of Future Parity Bonds.............................................................................41 Section15. Sale of Bonds.........................................................................................................44 Section 16. Undertaking to Provide Ongoing Disclosure.........................................................46 Section 17. Supplements and Amendments..............................................................................51 Section 18. Lost or Destroyed Bonds........................................................................................53 Section19. Severability ............................................................................................................53 Section 20. Effective Date ........................................................................................................53 * This Table of Contents is provided for convenience only and is not a part of this ordinance. -i- H - 7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF SOLID WASTE UTILITY REVENUE BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO FUND THE RESERVE ACCOUNT, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. WHEREAS, the City of Port Angeles, Washington, a municipal corporation of the State of Washington (the "City"), owns, maintains and operates a solid waste utility system for the collection and disposal of garbage and recycling (the "Solid Waste System"); and WHEREAS, the Port Angeles Landfill (the "Landfill"), a municipal landfill owned by the City and operated as part of the Solid Waste System, is located on a bluff overlooking the Strait of Juan de Fuca; and WHEREAS, due to wave action along the shoreline of the Strait of Juan de Fuca, the bluff has eroded and continues to erode, resulting in failures of the bluff slope and refuse being deposited on the beach; and WHEREAS, in response to the erosion, the City has implemented a managed retreat of the Landfill away from the shoreline, which includes relocating refuse away from the bluff, modifying, improving, and reinforcing the existing seawall; and making other improvements and betterments to the Landfill (the "Project"); and H - 8 WHEREAS, the Project will be financed from funds from the Washington State Department of Ecology, proceeds of the City's Limited Tax General Obligation Bonds, 2014, other City funds, and other available sources; and WHEREAS, the City is authorized pursuant to chapters 35.92 and 39.46 RCW to issue revenue bonds payable from the operating revenues of the Solid Waste System for the purpose of financing a portion of the costs of the Project; and WHEREAS, after due consideration it appears to this City Council that it is in the best interest of the City to authorize the issuance and sale of solid waste utility revenue bonds to pay a portion of the costs of the Project, fund the debt service reserve account, capitalize interest on the bonds, and pay costs of issuance for the bonds, as set forth herein; and WHEREAS, this City Council wishes to delegate authority to the Chief Financial Officer (the "Designated Representative"), for a limited time, to approve the interest rates, maturity dates, redemption terms and principal maturities for the bonds within the parameters set by this ordinance; and WHEREAS, the City expects to receive a proposal from Piper Jaffray & Co. (the "Underwriter") and now desires to issue and sell the bonds to the Underwriter as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions and Interpretation of Terms. (a) Definitions. As used in this ordinance, the following words have the following meanings: -2- H - 9 Accreted Value means: (i) with respect to any Capital Appreciation Bonds, as of the time of calculation, the sum of the amount representing the initial principal amount of such Capital Appreciation Bonds as set forth in the applicable Parity Bond Ordinance plus the interest accumulated, compounded and unpaid thereon as of the most recent compounding date, or (ii) with respect to original issue discount bonds under the Code, as of the time of calculation, the amount representing the initial public offering price of such original issue discount bonds plus the amount of the discounted principal which has accreted since the date of issue, determined in accordance with the provisions of the applicable Parity Bond Ordinance. Annual Debt Service, for any Fiscal Year or calendar year means the sum of: (a) the interest due in such year on all then outstanding Parity Bonds or Covered Bonds, as applicable, excluding, however, interest to be paid from the proceeds of Parity Bonds, (b) the principal of all then outstanding Parity Bonds or Covered Bonds, as applicable, that are Serial Bonds, due in such year, and (c) the Sinking Fund Requirement for all then outstanding Parity Bonds or Covered Bonds, as applicable, if any, for such year. For purposes of satisfying the Coverage Requirement and the Parity Requirement, Annual Debt Service for any Fiscal Year or calendar year shall exclude any Debt Service Offsets received or expected to be received in such Fiscal Year or calendar year. If the interest rate on any such bonds is other than a fixed rate, the rate applicable at the time of computation shall be used unless such rate is less than an interest rate equal to the yield to maturity equal to the higher of(i) the average of the SIFMA Municipal Swap Index over the 60 month period immediately preceding the date of computation, or (ii) the average of the -3- H - 10 SIFMA Municipal Swap Index over the 12 month period immediately preceding the date of computation, as determined within ten days prior to the date of computation or, if such computation is being made in connection with the certificate required for the issuance of Future Parity Bonds, then within 10 days prior to the date of such certificate. Average Annual Debt Service means the sum of the Annual Debt Service for the remaining years to the last scheduled maturity of the applicable issue or issues of Parity Bonds divided by the number of those years, with any partial year treated as one year for this purpose. Bond Account means the special fund of the City known as the "Solid Waste Utility System Bond Account" created in the Revenue Fund pursuant to Section 10 of this ordinance for the payment of the principal of, mandatory sinking fund payments and interest on the Parity Bonds. Bond Purchase Contract means the contract for the purchase of the Bonds between the Underwriter and the City, executed pursuant to Section 15. Bond Register means the books or records maintained by the Bond Registrar for the purpose of registration of the Bonds. Bond Registrar means, initially the fiscal agency of the State of Washington, whose duties include registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds, and paying the principal of, premium, if any, and interest on the Bonds. Bond Year means each one-year period that ends on the date selected by the City. The first and last Bond Years may be short periods. If no day is selected by the City before the earlier of the final maturity date of the Bonds or the date that is five years after the date of issuance of -4- H - 11 the Bonds, Bond Years end on each anniversary of the date of issue and on the final maturity date of the Bonds. Bonds mean the City's Solid Waste Utility Revenue Bonds, 2014, authorized to be issued pursuant to this ordinance in the aggregate principal amount of not to exceed $9,200,000. Capital Appreciation Bonds means any Parity Bonds, all or a portion of the interest on which is compounded and accumulated at the rates or in the manner, and on the dates, set forth in the applicable Parity Bond Ordinance and is payable only upon redemption or on the maturity date of such Parity Bonds. Parity Bonds that are issued as Capital Appreciation Bonds, but later convert to obligations on which interest is paid periodically, shall be Capital Appreciation Bonds until the conversion date and thereafter shall no longer be Capital Appreciation Bonds, but shall be treated as having a principal amount equal to their Accreted Value on the conversion date. Capital Obligation under the Service Agreement shall mean the City's debt service obligation payable to Waste Connections, Inc. pursuant to the terms of the Service Agreement, as set forth in the Moderate Risk Waste Facility and Transfer Station Amortization Schedules attached as Exhibit C to the Service Agreement. Chief Financial Officer means the duly appointed and acting Chief Financial Officer of the City or the successor to the duties of that office. City means the City of Port Angeles, a municipal corporation duly organized and existing under the laws of the State of Washington. City Council means the Port Angeles City Council, as the general legislative body of the City as the same is duly and regularly constituted from time to time. Code means the federal Internal Revenue Code of 1986, as amended, and applicable regulations. -5- H - 12 Commission means the United States Securities and Exchange Commission. Costs of Maintenance and Operation means all reasonable expenses incurred in causing the Solid Waste System to be operated and maintained in good repair, working order and condition, including without limitation: deposits, premiums, assessments or other payments for insurance, if any, on the Solid Waste System; payments into pension funds; State-imposed taxes; payments made to any other person or entity for the collection, transportation, treatment or disposal of solid waste or other commodity or service related to the Solid Waste System; and payments with respect to any other expenses of the Solid Waste System that are properly treated as operation and maintenance expenses under generally accepted accounting principles. Costs of Maintenance and Operation do not include any depreciation, amortization, or taxes levied or imposed by the City or payments to the City in lieu of taxes, or capital additions or capital replacements. Coverage Requirement means Net Revenue in each Fiscal Year at least equal to 125% of the Annual Debt Service payable on all Parity Bonds in such Fiscal Year. Furthermore, Revenue of the Solid Waste System and Costs of Maintenance and Operation may be adjusted, regardless of then applicable generally accepted accounting principles, for certain items (e.g., to omit unrealized gains or losses in investments) to reflect more fairly the Solid Waste System's annual operating performance. Covered Bonds mean the Bonds and those Future Parity Bonds designated in the ordinance authorizing their issuance as Covered Bonds secured by the Reserve Account. The City's Capital Obligation under the Service Agreement is not a Covered Bond secured by the Reserve Account. -6- H - 13 Debt Service Account means the account of that name created in the Bond Account pursuant to Section 10 of this ordinance. Debt Service Offset means receipts of the City that are not included in Revenue of the Solid Waste System and that are legally available to pay debt service on Parity Bonds, including without limitation federal interest subsidy payments, designated as such by the City. Designated Representative means the Chief Financial Officer or his or her designee. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as initial depository for the Bonds or any successor substitute depository for the Bonds. Financial Advisor means A. Dashen & Associates, or its successors. Fiscal Year means the fiscal year used by the City at any time. At the time of the passage of this ordinance, the Fiscal Year is the twelve-month period beginning January 1 of each year and ending December 31 of each year. Future Parity Bonds mean any revenue bonds, revenue warrants or other revenue obligations that may be issued in the future with a lien on Net Revenue to pay and secure the payment of the principal thereof and interest thereon equal to the lien created on Net Revenue to pay and secure the payment of the principal of and interest on the Outstanding Parity Obligations and the Bonds. Government Obligations means those obligations now or hereafter defined as such in chapter 39.53 RCW, as this chapter may be hereafter amended or restated. Landfill means the Port Angeles Landfill, a municipal landfill owned by the City and operated as part of the Solid Waste System. -7- H - 14 Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. Maximum Annual Debt Service means, at the time of calculation, the maximum amount of Annual Debt Service that will become due in any Fiscal Year or calendar year on all then outstanding Parity Bonds or Covered Bonds, as applicable. Moody's means Moody's Investors Service Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, or its successor. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. Net Proceeds, when used with reference to the Bonds, means the principal amount of such Bonds, plus accrued interest and original issue premium, if any, and less original issue discount, if any. Net Revenue means the Revenue of the Solid Waste System less the Costs of Maintenance and Operation. Outstanding Parity Obligations, as of the date of issue of the Bonds, means the City's Capital Obligation under the Service Agreement. Parity Bond Ordinance means an ordinance of the City that authorizes the issuance and sale and establishes the terms of a particular issue of Parity Bonds and other matters relating to the same plan of finance. Parity Bonds means the Outstanding Parity Obligations, the Bonds and any Future Parity Bonds. -8- H - 15 Parity Requirement means, for each year that the Parity Bonds or Future Parity Bonds are scheduled to be outstanding, Net Revenue equal to or greater than 125% of Maximum Annual Debt Service for all Parity Bonds plus the Future Parity Bonds proposed to be issued. Private Person means the federal government or any natural person engaged in a trade or business or any trust, estate,partnership, association, company or corporation. Private Person Use means the use of property in a trade or business by a Private Person if such use is other than as a member of the general public. Private Person Use includes ownership of the property by the Private Person as well as other arrangements that transfer to the Private Person the actual or beneficial use of the property (such as a lease, management or incentive payment contract or other special arrangement) in such a manner as to set the Private Person apart from the general public. Use of property as a member of the general public includes attendance by the Private Person at municipal meetings or business rental of property to the Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the rental paid by any Private Person who desires to rent the property. Use of property by nonprofit community groups or community recreational groups is not treated as Private Person Use if such use is incidental to the governmental uses of property, the property is made available for such use by all such community groups on an equal basis and such community groups are charged only a de minimis fee to cover custodial expenses. Professional Utility Consultant means the independent person(s) or firm(s) selected by the City having a favorable reputation for skill and experience with solid waste systems of comparable size and character to the Solid Waste System in such areas as are relevant to the purposes for which they are retained. -9- H - 16 Project means certain improvements to the Solid Waste System, including but not limited to relocating refuse; modifying, improving, and reinforcing an existing seawall at the Landfill; and making other improvements and betterments to the Landfill. Project Account means the account created pursuant to Section 8 of this ordinance. Qualified Insurance means any unconditional municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States or by a service corporation acting on behalf of one or more such insurance companies, which insurance company or service corporation, as of the time of issuance of such policy or surety bond, is then rated in one of the two highest rating categories by either Moody's or S&P, or any other rating agency then maintaining a rating on the Bonds. Qualified Letter of Credit means any irrevocable letter of credit issued by a bank for the account of the City and for the benefit of the owners of Parity Bonds, provided that such bank maintains an office, agency or branch in the United States, and provided further, that, as of the time of issuance of such letter of credit, such bank is then rated in one of the two highest rating categories by either Moody's or S&P, or any other rating agency then maintaining a rating on the Bonds. Registered Owner means the person named as the registered owner of a Bond in the Bond Register. For so long as the Bonds are held in book-entry only form, DTC or its nominee will be deemed to be the sole Registered Owner. Rate Stabilization Account means the account of that name maintained pursuant to Section 9 of this ordinance. Reserve Account means the account of that name in the Bond Account created pursuant to Section 10 of this ordinance. -10- H - 17 Reserve Account Requirement is the dollar amount to be calculated with respect to all Covered Bonds and separately with respect to other Parity Bonds. (a) With respect to Covered Bonds, the Reserve Account Requirement shall be equal to the least of: (1) Maximum Annual Debt Service for Covered Bonds, (2) 10% of the initial principal amount of Covered Bonds of each series, and (3) 125% of Average Annual Debt Service for Covered Bonds; provided, however, that the dollar amount required to be contributed, if any, as a result of the issuance of a series of Future Parity Bonds shall not be greater than the Tax Maximum. If the dollar amount required to be contributed at the time of issuance of a series of Future Parity Bonds exceeds the Tax Maximum, then the amount required to be contributed shall be equal to the Tax Maximum. (b) With respect to other series of Parity Bonds, the Reserve Account Requirement shall be equal to the amount, if any, specified in the applicable Parity Bond Ordinance. Revenue or Revenue of the Solid Waste System means all of the earnings and revenues received by the City from the maintenance and operation of the Solid Waste System, including investment earnings, but excluding government grants, proceeds from the sale of System property, principal proceeds of bonds and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to defease or refund System obligations, or held in a special account for the purpose of paying a rebate to the United States Government under the Code. Revenue of the Solid Waste System shall also include any federal or State reimbursements of operating expenses to the extent such expenses are included as Costs of Maintenance and Operation. -11- H - 18 Revenue Fund means the special fund of the City known as the "Solid Waste Utility Fund" created in the office of the Chief Financial Officer. Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. S&P means Standard & Poor's Ratings Services, a New York limited liability company, its successors and their assigns. Serial Bonds means Parity Bonds maturing in specified years, for which no Sinking Fund Requirements are mandated. Service Agreement means that certain Solid Waste Processing Facility Development and Management Services Agreement dated April 5, 2005, by and between the City and Waste Connections, Inc., as previously amended and as may be amended from time to time hereafter. Sinking Fund Requirement means, for any Fiscal Year or calendar year, the principal amount of Term Bonds required to be purchased, redeemed or paid at maturity in such year as established by the Parity Bond Ordinance authorizing the issuance of such Term Bonds. Solid Waste System means the entire solid waste collection, transportation, and disposal system of the City, created by Ordinance No. 2317, as amended, together with all additions thereto and betterments and extensions thereof at any time made, acquired or constructed, together with any other utility systems of the City hereafter combined with the Solid Waste System. Tax Maximum means the maximum dollar amount permitted by the Code to be allocated to a bond reserve account from bond proceeds without requiring a balance to be invested at a restricted yield. -12- H - 19 Term Bonds mean Parity Bonds of any principal maturity that are subject to mandatory redemption and for which mandatory sinking fund payments are required as provided in the applicable Parity Bond Ordinance. Underwriter means Piper Jaffray & Co., or its successors. (b) Interpretation. In this ordinance, unless the context otherwise requires: (1) The terms "hereby," "hereof," "hereto," "herein," "hereunder" and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this ordinance; (2) Words of the masculine gender shall mean and include correlative words of the feminine and neutral genders and words importing the singular number shall mean and include the plural number and vice versa; (3) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (4) Any headings preceding the text of the several articles and sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and (5) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. Adoption of Plan of Additions and Betterments. The City Council hereby finds that the public interest, welfare and convenience require certain improvements to the Solid -13- H - 20 Waste System, including but not limited to relocating refuse; modifying, improving, and reinforcing an existing seawall; and making other improvements and betterments to the Landfill (the "Project") and that said improvements are legally required and/or economically sound, and will contribute to the conduct of the business of the Solid Waste System in an efficient manner. The City shall provide all equipment, connections and appurtenances together with all work as may be incidental and necessary to complete the Project. The Project facilities shall be integrated into the Solid Waste System as required to provide a fully operational facility. The City may make such changes in or additions to the Project or in the construction or design of other facilities of the Solid Waste System as may be found necessary or desirable. Implementation or completion of any specified improvement shall not be required if the City Council determines that, due to substantially changed circumstances, it has become advisable or impractical. If the Project has either been completed, or its completion duly provided for, or its completion found to be impractical, the City may apply the Bond proceeds or any portion thereof to other improvements to the Solid Waste System, as the City Council in its discretion shall determine. The City shall acquire by purchase, lease or condemnation, all property, both real and personal, or any interest therein, or rights-of-way and easements that may be found necessary to acquire, construct and install the Project. The estimated cost of this plan of additions and betterments and all costs incidental thereto (including costs of issuance of the Bonds and funding of the Reserve Account Requirement), is at least $19,000,000, a portion of which shall be provided out of the proceeds of the sale of the Bonds. -14- H - 21 Section 3. Authorization and Description of Bonds. For the purpose of paying the costs of the Project, funding the Reserve Account, capitalizing interest on the Bonds, and paying costs of issuance of the Bonds, the City is hereby authorized to issue and sell solid waste utility revenue bonds in the aggregate principal amount of not to exceed $9,200,000 (the"Bonds"). The Bonds shall be designated "City of Port Angeles, Washington, Solid Waste Utility Revenue Bonds, 2014[ ]" with additional series designation or other designation as determined to be necessary by the Designated Representative. The Bonds shall be dated as of their date of delivery; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, within a maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; and shall bear interest from their date payable on the dates and commencing as provided in the Bond Purchase Contract; and shall mature on the dates and in the principal amounts set forth in the Bond Purchase Contract and as approved by the Designated Representative pursuant to Section 15. The Bonds shall be obligations only of the Bond Account and the accounts held therein and shall be payable and secured as provided herein. The Bonds do not constitute an indebtedness or general obligation of the City within the meaning of the constitutional provisions and limitations of the state of Washington. Section 4. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies. The City shall cause a bond register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all -15- H - 22 necessary provisions to permit the exchange or registration or transfer of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option of the Chief Financial Officer upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the Chief Financial Officer. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication of the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes (except as provided in Section 16 of this ordinance), and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 4(h), but such Bond may be transferred as herein provided. All such payments made as described in Section 4(h) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) -16- H - 23 or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held by a depository, DTC or its successor depository or its nominee shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the Chief Financial Officer pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4)below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the Chief Financial Officer to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Chief Financial Officer may hereafter appoint a -17- H - 24 substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause(A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the Chief Financial Officer, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Chief Financial Officer. (4) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or(B) the Chief Financial Officer determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain physical Bond certificates, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held by a depository. The Chief Financial Officer shall deliver a written request to the Bond Registrar, together with a supply of physical Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the Chief Financial Officer to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly -18- H - 25 authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity, and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity, and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the transfer of or to exchange any Bond during the 15 days preceding any principal payment or redemption date. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners or beneficial owners of Bonds. (g) Registration Covenant. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (h) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all Bonds are held by a depository, payments of principal thereof and interest thereon shall be made as -19- H - 26 provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer held by a depository, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date, or upon the written request of a Registered Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the applicable payment date), such payment shall be made by the Bond Registrar by wire transfer to the account within the United States designated by the Registered Owner. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 5. Redemption, Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional and Extraordinary Optional Redemption, if any. The Bonds shall be subject to optional redemption and extraordinary optional redemption on the dates, at the prices and under the terms set forth in the Bond Purchase Contract approved by the Designated Representative pursuant to Section 15. The Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Bond Purchase Contract and as approved by the Designated Representative pursuant to Section 15. (b) Purchase of Bonds. The City reserves the right to use at any time any surplus Revenue of the Solid Waste System, or other available funds, to purchase for retirement any of the Bonds at any price deemed reasonable by the City. (c) Selection of Bonds for Redemption. For as long as the Bonds are held in book-entry only form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Bonds are no -20- H - 27 longer held by a depository, the selection of such Bonds to be redeemed and the surrender and reissuance thereof, as applicable, shall be made as provided in the following provisions of this subsection (c). If the City redeems at any one time fewer than all of the Bonds having the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar)in increments of$5,000. In the case of a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption. (1) Official Notice. For so long as the Bonds are held in by a depository, notice of redemption shall be given in accordance with the operational arrangements of DTC as then in effect, and neither the City nor the Bond Registrar will provide any notice of redemption to any beneficial owners. The notice of redemption may be conditional. Thereafter (if the Bonds are no longer held by a depository), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of any such redemption (which redemption may be conditioned by the Bond Registrar on the receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and -21- H - 28 not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. All official notices of redemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, (C) if fewer than all outstanding Bonds are to be redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (D) that unless conditional notice of redemption has been given and such conditions have either been satisfied or waived, on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (E) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Bond Registrar. On or prior to any redemption date, unless such redemption has been rescinded or revoked, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. The City retains the right to rescind any redemption notice and the related optional redemption of Bonds by giving notice of rescission to the affected registered owners at any time on or prior to the scheduled redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and the Bonds for which the notice of optional redemption has been rescinded shall remain outstanding. -22- H - 29 (2) Effect of Notice; Bonds Due. If an unconditional notice of redemption has been given or if the conditions set forth in a conditional notice of redemption have been satisfied or waived, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C)the rate of interest borne by each Bond being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption may be sent at least 20 days before the redemption date to each party entitled to receive notice pursuant to Section 16 and with such additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) Amendment of Notice Provisions. The foregoing notice provisions of this Section 5, including but not limited to the information to be included in redemption notices and -23- H - 30 the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 6. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF PORT ANGELES SOLID WASTE UTILITY REVENUE BOND, 2014 INTEREST RATE: MATURITY DATE: CUSIP NO.: REGISTERED OWNER: CEDE& CO. PRINCIPAL AMOUNT: Dollars The City of Port Angeles, Washington (the "City"), a municipal corporation of the State of Washington, for value received hereby promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date set forth above the Principal Amount set forth above, and to pay interest thereon from the date hereof, or the most recent date to which interest has been paid or duly provided for, at the Interest Rate set forth above payable on the first days of each and , commencing on Both principal of and interest on this bond are payable in lawful money of the United States of America. Interest and principal shall be paid as provided in the Blanket Issuer Letter of Representations (the "Letter of Representations") by the City to The Depository Trust Company ("DTC"). The fiscal agency of the State of Washington has been appointed by the City as the authenticating agent,paying agent and registrar for the bonds of this issue (the "Bond Registrar"). Capitalized terms used in this bond that are not specifically defined have the meanings given such terms in Ordinance No. of the City adopted on June 3, 2014 (the "Bond Ordinance"). Reference is made to the Bond Ordinance and any and all modifications and amendments thereto for a description of the nature and extent of the security for the bonds of this issue, the funds or revenues pledged, and the terms and conditions upon which such bonds are issued. This bond is one of a series of bonds in the aggregate principal amount of$ (the "Bonds"), issued pursuant to the Bond Ordinance, to finance costs related to (a) improving and stabilizing the Port Angeles Landfill, (b) funding the Reserve Account, (c) capitalizing interest on the Bonds, and(d)paying costs of issuing the Bonds. -24- H - 31 The principal of and interest on the Bonds are payable solely out of the special fund of the City known as the "Solid Waste Utility System Bond Account" (the "Bond Account"). The Bonds are special limited obligations of the City and are not obligations of the State of Washington or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State of Washington is pledged to the payment of the Bonds. Under the Bond Ordinance, the City is obligated to set aside and pay into the Debt Service Account out of Revenue of the Solid Waste System certain fixed amounts sufficient to pay when due the principal of and interest and premium, if any, on the Bonds and all other Parity Bonds. To the extent provided by the Bond Ordinance, the amounts pledged to be paid from Revenue into the Bond Account and accounts therein are a lien and charge thereon equal in rank to the lien and charge upon Revenue of the amounts required to pay and secure the payment of the Outstanding Parity Obligations and any Future Parity Bonds that the City may issue hereafter, and superior to all other liens and charges of any kind or nature, except the Costs of Maintenance and Operation of the Solid Waste System. The Bond Ordinance sets forth covenants of the City to secure the payment of Parity Bonds, including but not limited to covenants relating to rates and charges of the Solid Waste System, operations of the Solid Waste System, and the issuance of Future Parity Bonds. The Bonds are subject to redemption prior to maturity as provided in the Bond Purchase Contract. The Bonds may be transferred and exchanged upon surrender to the Bond Registrar as provided in the Bond Ordinance. The Bonds are not "private activity bonds" as such term is defined in the Internal Revenue Code of 1986, as amended (the "Code"). The City has not designated the Bonds as "qualified tax-exempt obligations"within the meaning of Section 265(b)(3)(B) of the Code. This bond will not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon has been manually signed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required by the Constitution and statutes of the state of Washington to exist, to have happened and to have been performed precedent to and in the issuance of this bond do exist, have happened and have been performed in due time, form and manner as prescribed by law. IN WITNESS WHEREOF, the City of Port Angeles, Washington, has caused this bond to be signed by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of the City Clerk, and seal of the City to be impressed or reproduced hereon, all as of , 2014. CITY OF PORT ANGELES, WASHINGTON ( SEAL) By [Manual or Facsimile Signature] Mayor -25- H - 32 Attest: [Manual or Facsimile Signature] City Clerk CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Solid Waste Utility Revenue Bonds, 2014[ ], of the City of Port Angeles, Washington, dated 2014, as described in the within mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENT, as Registrar By THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as subcontractor to The Bank of New York Mellon, fiscal agent for the State of Washington By Authorized Officer Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor and the City Clerk and shall have the seal of the City impressed or a facsimile thereof imprinted, or otherwise reproduced thereon. In the event any officer who shall have signed or whose facsimile signatures appear on any of the Bonds shall cease to be such officer of the City before said Bonds shall have been authenticated or delivered by the Bond Registrar or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issuance, shall be as binding upon the City as though said person had not ceased to be such officer. Any Bond may be signed and attested on behalf of the City by such persons who, at the actual date of execution of such Bond shall be the proper officer of the City, although at the original date of such Bond such persons were not such officers of the City. -26- H - 33 Only such Bonds as shall bear thereon a Certificate of Authentication manually executed by an authorized representative of the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. Section 8. Application of Bond Proceeds. The Chief Financial Officer is hereby authorized to create a Project Account, and subaccounts therein as necessary, for the purposes set forth in this section. A portion of the proceeds of the Bonds shall be deposited in the Project Account in the amounts specified in the closing memorandum prepared in connection with the issuance of the Bonds. Such proceeds shall be used to pay or reimburse the City for the costs of the Project, to capitalize interest on the Bonds, and to pay costs of issuance of the Bonds. The Chief Financial Officer shall invest money in the Project Account and the subaccounts contained therein in such obligations as may now or hereafter be permitted to cities of the State by law and which will mature prior to the date on which such money shall be needed. Upon completion of the Project, Bond proceeds (including interest earnings thereon) may be used for other approved capital projects of the Solid Waste System as approved by the City Council or shall be transferred to the Debt Service Account to pay principal on the Bonds. The City may deposit proceeds of the Bonds or other available funds of the City in the Reserve Account to meet the requirements of Section 10 hereof, or alternatively, may acquire Qualified Insurance or a Qualified Letter of Credit to satisfy such requirement. -27- H - 34 Section 9. Revenue Fund, Priority of Application of Revenue, Rate Stabilization Account . (a) Revenue Fund. All Revenue of the Solid Waste System shall be deposited in the "Solid Waste Utility Fund" (the "Revenue Fund"). The City shall maintain the Revenue Fund as a separate enterprise fund of the City. Notwithstanding the foregoing, the Chief Financial Officer may maintain such separate funds and accounts in such names and under such additional designations as shall be required to comply with City practices and/or the uniform system of accounting established by the State Auditor from time to time. (b) Priority of Application of Revenue of the Solid Waste System. The Revenue Fund shall be held separate and apart from all other funds and accounts of the City, and the Revenue of the Solid Waste System deposited in such Fund shall be used only for the following purposes and in the following order of priority: FIRST, to pay the Costs of Maintenance and Operation of the Solid Waste System; SECOND, to pay interest on Parity Bonds when due, including reimbursements to the issuer of a Qualified Letter of Credit or Qualified Insurance if the Qualified Letter of Credit or Qualified Insurance secures the payment of interest on Parity Bonds and the applicable Parity Bond Ordinance provides for such reimbursement; THIRD, to pay the principal of Parity Bonds as it comes due at maturity or as the principal is required to be paid to satisfy any Sinking Fund Requirements, including reimbursements to the issuer of a Qualified Letter of Credit or Qualified Insurance if the Qualified Letter of Credit or Qualified Insurance secures the payment of principal of Parity Bonds and the applicable Parity Bond Ordinance provides for such reimbursement; -28- H - 35 FOURTH, to make all payments required to be made into the Reserve Account for Covered Bonds and to any other reserve account created in the future for the payment of debt service on Future Parity Bonds, including reimbursements to the issuer of a Qualified Letter of Credit or Qualified Insurance if the Qualified Letter of Credit or Qualified Insurance has been issued to fund the Reserve Account Requirement and/or any other reserve requirement(s) for any Future Parity Bonds and the applicable Parity Bond Ordinance provides for such reimbursement; FIFTH, to make all payments required to be made into any revenue bond redemption fund or revenue warrant redemption fund and debt service fund or reserve account created to pay and secure the payment of the principal of and interest on loans and any other revenue bonds or revenue warrants of the City having a lien upon the Revenue of the Solid Waste System junior and inferior to the lien thereon for the payment of the principal of and interest on Parity Bonds; and SIXTH, to retire by redemption or purchase any outstanding revenue bonds or revenue warrants of the City, to make transfers into the Rate Stabilization Account, to make necessary additions, betterments, improvements and repairs to or extensions and replacements of the Solid Waste System, and for any other lawful City purposes, in the order of priority as determined by the City. The City may transfer any money from any funds or accounts of the Solid Waste System legally available therefor, except bond redemption funds, refunding escrow funds or defeasance funds, to meet the required payments to be made into the Bond Account. (c) Rate Stabilization Account. The Chief Financial Officer is hereby authorized to create a Rate Stabilization Account within the Revenue Fund. The City hereby determines that the maintenance of a Rate Stabilization Account will moderate fluctuations in Net Revenue and -29- H - 36 help to alleviate the need for short-term rate adjustments. Money in the Rate Stabilization Account will be transferred as determined from time to time by the City. The City may make payments into the Rate Stabilization Account from the Revenue Fund at any time. Money in the Rate Stabilization Account may be withdrawn at any time and used for the purpose for which the Revenue of the Solid Waste System may be used. Amounts withdrawn from the Rate Stabilization Account shall increase Revenue of the Solid Waste System for the Fiscal Year in which they are withdrawn, and amounts deposited in the Rate Stabilization Account shall reduce Revenue of the Solid Waste System for the Fiscal Year during which they are deposited. Deposits into or withdrawals from the Rate Stabilization Account that occur within 90 days after the end of a Fiscal Year may be treated as occurring within such Fiscal Year. Earnings on the Rate Stabilization Account shall be deposited into the Revenue Fund. Section 10. Bond Account, Debt Service Account, Reserve Account. The Chief Financial Officer is hereby authorized to establish the "Solid Waste Utility System Bond Account" in the Revenue Fund for the payment of the debt service on all Parity Bonds (the "Bond Account"). The Chief Financial Officer is also hereby authorized to establish the "Reserve Account" (the "Reserve Account") within the Bond Account as a common reserve, securing the payment of the Covered Bonds. (a) Debt Service Account. A special account known as the Debt Service Account is hereby authorized to be created in the Bond Account for the purpose of paying the principal of, premium, if any, and interest on the Parity Bonds. As long as any of the Bonds remain outstanding, the City hereby irrevocably obligates and binds itself to set aside and pay from the Revenue Fund into the Debt Service Account, on or before the date due, those amounts necessary, together with Revenue of the Solid Waste System -30- H - 37 collected and deposited and such other money as is on hand and available therefor in the Debt Service Account, to pay the interest or principal and interest next coming due on the then outstanding Parity Bonds. The City covenants and agrees that if it issues any Future Parity Bonds that are Term Bonds, it will provide in the applicable Parity Bond Ordinance for annual payments to be made from the Revenue Fund into the Debt Service Account sufficient, together with Revenue of the Solid Waste System collected and deposited and such other money as is on hand and available therefor in such account, to amortize the principal of future Parity Bonds that are Term Bonds on or before the maturity date thereof. (b) Reserve Account. The Reserve Account shall be maintained for the purpose of securing the payment of the principal of and interest on the Covered Bonds. The City hereby covenants and agrees that it will satisfy the Reserve Account Requirement for the Bonds by depositing into the Reserve Account proceeds of the Bonds, other available funds, or Qualified Insurance in an amount that will be sufficient to satisfy the Reserve Account Requirement with respect to the Bonds. The City further covenants and agrees that if it issues any Future Parity Bonds that are Covered Bonds it will provide in the applicable Parity Bond Ordinance that within three years of the date of issuance of the Future Parity Bonds money will be deposited into the Reserve Account, from proceeds of such bonds or other funds available therefor, so that the total amount of money in the Reserve Account will at least equal the Reserve Account Requirement. The City may substitute Qualified Insurance or a Qualified Letter of Credit for amounts required to be deposited into or amounts then on deposit in the Reserve Account at any time. -31- H - 38 The Reserve Account Requirement may be recalculated at any time. Whenever there is a sufficient amount in the Bond Account, including the Reserve Account, to pay the principal of and interest on all outstanding Covered Bonds, the money in the Reserve Account may be used to pay such principal and interest. As long as the money left remaining on deposit in the Reserve Account is equal to the Reserve Account Requirement, money in the Reserve Account may be transferred at any time to the Debt Service Account and used to pay the principal of and interest on Covered Bonds as the same becomes due and payable. The City also may transfer out of the Reserve Account any money required in order to prevent any Parity Bonds from becoming "arbitrage bonds"under the Code. If a deficiency in the Debt Service Account for the payment of debt service on Covered Bonds shall occur, such deficiency shall be made up from amounts on deposit in the Reserve Account. Any such deficiency shall first be made up by the withdrawal of cash in the Reserve Account and by the sale or redemption of obligations held in the Reserve Account (in such amounts as will provide cash in the Reserve Account sufficient to make up any such deficiency with respect to such Covered Bonds) and second, by a draw from any Qualified Letter of Credit or Qualified Insurance for such Covered Bonds. Such draw shall be made at such times and under such conditions as provided in the agreement for such Qualified Letter of Credit or Qualified Insurance. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up within 12 months of the date of withdrawal from Net Revenue (or out of any other moneys on hand legally available for such purpose), after making necessary provision for the payments required to be made into the Debt Service Account within such year. -32- H - 39 Any Qualified Letter of Credit or Qualified Insurance shall not be cancelable on less than 30 days' notice to the City. In the event of any cancellation, the Reserve Account shall be funded as if the Covered Bonds that remain outstanding had been issued on the date of such notice of cancellation. In the event that the City elects to meet the Reserve Account Requirement through the use of a Qualified Letter of Credit or Qualified Insurance, the City may contract with the entity providing such Qualified Letter of Credit or Qualified Insurance that the City's reimbursement obligation, if any, to such entity shall be made in accordance with the provisions of Section 9(b). (c) Priority of Lien of Payments into Bond Account. The amounts so pledged to be paid into the Bond Account from the Revenue Fund are hereby declared to be a prior lien and charge upon the Revenue of the Solid Waste System superior to all other charges of any kind or nature whatsoever except the Costs of Maintenance and Operation of the Solid Waste System, and except that the amounts so pledged are of equal lien to the charges upon such Revenue of the Solid Waste System for the payment of the principal of and interest on any Future Parity Bonds. (d) Application and Investment of Moneys in the Bond Account. Money in the Bond Account may be kept in cash or invested as permitted by law. Investments in the Debt Service Account shall mature or have a guaranteed redemption price prior to maturity prior to the date on which such money shall be needed for required interest or principal payments. Investments in the Reserve Account shall mature or have a guaranteed redemption price prior to maturity not later than the last maturity of any then outstanding Parity Bonds. (e) Sufficiency of Revenues. The City Council hereby finds that in fixing the amounts to be paid into the Bond Account and the accounts held therein out of the Revenue of the Solid Waste System, it has exercised due regard for the Costs of Maintenance and Operation and has -33- H - 40 not obligated the City to set aside and pay into the Bond Account a greater amount of such Revenue than in its judgment will be available over and above the Costs of Maintenance and Operation. Section 11. Covenants and Agreements. The City hereby covenants with the owner of each of the Bonds for as long as any of the same remain outstanding as follows: (a) Operation and Maintenance. It will at all times maintain, preserve and keep the properties of the Solid Waste System in good repair, working order and condition, will make all necessary and proper additions, betterments, renewals and repairs thereto, and improvements, replacements and extensions thereof, and will at all times operate or cause to be operated the properties of the Solid Waste System and the business in connection therewith in an efficient manner and at a reasonable cost. (b) Establishment and Collection of Rates and Charges. It will establish, maintain and collect rates and charges for the collection and disposal of garbage and recycling service and for all other utility services that will be fair and equitable, and will adjust those rates and charges from time to time so that: (1) The Revenue of the Solid Waste System will be sufficient (i) to pay all Costs of Maintenance and Operation, (ii) to pay when due all amounts that the City is obligated to pay into the Bond Account and the accounts therein, and (iii) to pay all taxes, assessments or other governmental charges lawfully imposed on the Solid Waste System or the revenue therefrom or payments in lieu thereof and any and all other amounts which the City may now or hereafter become obligated to pay from the Revenue of the Solid Waste System by law or contract; and -34- H - 41 (2) The Net Revenue of the Solid Waste System in each Fiscal Year will be at least equal to the Coverage Requirement. The failure of the City to satisfy the Coverage Requirement as required by subparagraph (2) of this paragraph (b) shall not be an event of default of this ordinance if the City promptly retains a Professional Utility Consultant to recommend to the City Council adjustments in the rates of the Solid Waste System necessary to meet the requirements of that subparagraph and if the City Council adopts the recommended modifications within 180 days of the date the failure became known to the City Council. (c) Sale, Transfer or Disposition of the Solid Waste System. The City will not sell or otherwise dispose of the Solid Waste System in its entirety unless simultaneously with such sale or other disposition the City provides for payment into the Debt Service Account of cash or Government Obligations sufficient together with interest to be earned thereon to pay the principal of and interest on the then outstanding Parity Bonds, nor will the City sell or otherwise dispose of any part of the useful operating properties of the Solid Waste System unless the City replaces such properties or provides for payment into the Debt Service Account of the greater of: (1) An amount that will be in the same proportion to the net amount of Parity Bonds then outstanding (defined as the total amount of the Parity Bonds less the amount of cash and investments in the Debt Service Account) that the Net Revenue from the portion of the Solid Waste System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or (2) An amount that will be in the same proportion to the net amount of Parity Bonds then outstanding (as defined in (1) above) that the book value of the part of the Solid -35- H - 42 Waste System sold or disposed of bears to the book value of the entire System immediately prior to such sale or disposition. The proceeds of any such sale or disposition of a portion of the properties of the Solid Waste System (to the extent required above) shall be paid into the Debt Service Account. Notwithstanding any other provision of this subsection, the City may sell or otherwise dispose of any of the works, plant, properties, equipment, and facilities of the Solid Waste System or any real or personal property comprising a part of the same with a value less than 5% of the net utility plant of the Solid Waste System or that has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Solid Waste System, or no longer necessary, material to or useful in such operation, without making any deposit into the Debt Service Account. (d) Liens Upon the Solid Waste System. Except as otherwise provided in this ordinance, it will not at any time create or permit to accrue or to exist any lien or other encumbrance or indebtedness upon the Revenue of the Solid Waste System or any part thereof, prior or superior to the lien thereon for the payment of the Parity Bonds, and will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Revenue of the Solid Waste System or any part thereof, prior or superior to, or on a parity with, the lien of the Parity Bonds, or which might impair the security of the Parity Bonds. (e) Books and Accounts. The City will maintain complete books and records relating to the operation of the Solid Waste System and its financial affairs, and will cause such books and records to be audited annually, and cause to be prepared an annual financial and operating statement, which statement will be mailed to any owner of Parity Bonds upon request. -36- H - 43 (f) Collection of Delinquent Accounts. The City will promptly collect all service charges, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. (g) Maintenance of Insurance. It at all times will carry fire and extended coverage, public liability and property damage and such other forms of insurance with responsible insurers and with policies payable to the City on such of the buildings, equipment, works,plants, facilities and properties of the Solid Waste System as are ordinarily carried by municipal or privately owned utilities engaged in the operation of like systems, and against such claims for damages as are ordinarily carried by municipal or privately owned utilities engaged in the operation of like systems, or it will self-insure or will participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the City, to protect the Solid Waste System and the owners of the Parity Bonds against loss. (h) No Free Service. Except as permitted by legislation of the City Council or other law, the City will not furnish any service of the Solid Waste System to any customer whatsoever free of charge. Section 12. Tax Covenants. The City covenants that it will not take or permit to be taken on its behalf any action that would adversely affect the exemption from federal income taxation of the interest on the Bonds and will take or require to be taken such acts as may reasonably be within its ability and as may from time to time be required under applicable law to continue the exemption from federal income taxation of the interest on the Bonds. (a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City covenants that it will not take any action or fail to take any action with respect to the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the -37- H - 44 Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which, if such use had been reasonably expected on the date of delivery of the Bonds to the initial purchasers thereof, would have caused the Bonds to be "arbitrage bonds" within the meaning of such term as used in Section 148 of the Code. The City represents that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not be relied upon. The City will comply with the requirements of Section 148 of the Code and the applicable regulations thereunder throughout the term of the Bonds. (b) Private Person Use Limitation. The City covenants that for as long as the Bonds are outstanding, it will not permit: (1) More than 10% of the Net Proceeds of the Bonds to be used for any Private Person Use; and (2) More than 10% of the principal or interest payments on the Bonds in a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City) in respect of property, or borrowed money, used or to be used for any Private Person Use. The City further covenants that, if: (3) More than five percent of the Net Proceeds of the Bonds are to be used for any Private Person Use; and (4) More than five percent of the principal or interest payments on the Bonds in a Bond Year are (under the terms of this ordinance or any underlying arrangement) directly or indirectly: -38- H - 45 (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City)in respect of property, or borrowed money, used or to be used for any Private Person Use, then, (i) any Private Person Use of the projects described in subsection (3) hereof or Private Person Use payments described in subsection (4) hereof that is in excess of the five percent limitations described in such subsections (3) or(4)will be for a Private Person Use that is related to the state or local governmental use of the projects financed and/or refinanced with the Bonds, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds used for the state or local governmental use portion of the projects to which the Private Person Use of such portion of the projects relates. The City further covenants that it will comply with any limitations on the use of the projects financed and/or refinanced with the Bonds by other than state and local governmental users that are necessary, in the opinion of nationally recognized bond counsel, to preserve the tax exemption of the interest on the Bonds. (c) Modification of Tax Covenants. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. To that end, the provisions of this section may be modified or eliminated without any requirement for formal amendment thereof upon receipt of an opinion of nationally recognized bond counsel that such modification or elimination will not adversely affect the tax exemption of interest on any Bonds. Section 13. Defeasance. In the event that the City, to effect the payment, retirement or redemption of any Bond, sets aside in the Debt Service Account or in another special account, -39- H - 46 cash or noncallable Government Obligations, or any combination of cash and/or noncallable Government Obligations, in amounts and maturities which, together with the known earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Debt Service Account for the payment of the principal of and interest on such Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive payment of principal, premium, if any, and interest from the Debt Service Account or such special account, and such Bond shall be deemed to be not outstanding under this ordinance. In the event that the refunding plan provides that the Bonds being refunded or the refunding bonds to be issued be secured by money and/or Government Obligations pending the prior redemption of those Bonds being refunded and if such refunding plan also provides that certain money and/or Government Obligations are pledged irrevocably for the prior redemption of those Bonds included in the refunding plan, then only the debt service on the Bonds which are not defeased Bonds and the refunding bonds, the payment of which is not so secured by the refunding plan, shall be included in any computation of the Coverage Requirement or the Parity Requirement. The City shall give written notice of defeasance to the owners of all Bonds so provided for within 30 days after the defeasance and to each party entitled to receive notice in accordance with Section 16. -40- H - 47 Section 14. Issuance of Future Parity Bonds. (a) Conditions upon the Issuance of Future Parity Bonds. Except as provided below, the City shall not issue any series of Future Parity Bonds or incur any additional indebtedness with a lien or charge on Net Revenue equal to the lien and charge thereon of the Parity Bonds at the time outstanding unless: (1) the City shall not have been in default in satisfying the Coverage Requirement for the immediately preceding Fiscal Year; (2) the Parity Bond Ordinance authorizing the issuance of such Future Parity Bonds includes the covenants provided in Section 11 hereof, (3) the Parity Bond Ordinance provides (i) with respect to Future Parity Bonds that are Term Bonds, for annual payments to be made from the Revenue Fund to the Debt Service Account as provided in Section 10(a) of this ordinance, and (ii) with respect to Future Parity Bonds that are Covered Bonds, that the Reserve Account Requirement shall be funded no later than three years from the date of delivery of the Future Parity Bonds as provided in Section 10(b) of this ordinance; and (4) except as otherwise provided in subsection (b) below, there shall have been filed a certificate (prepared as described in subsection (c) or (d) below) demonstrating fulfillment of the Parity Requirement, commencing with the first full Fiscal Year following the date on which any portion of interest on the series of Future Parity Bonds then being issued no longer will be paid from the proceeds of such series of Future Parity Bonds. (b) Refunding Bonds. The certificate described in the foregoing subsection (a)(4) shall not be required as a condition to the issuance of Future Parity Bonds if the Future Parity -41- H - 48 Bonds being issued are for the purpose of refunding at or prior to their maturity any part or all of the then outstanding Parity Bonds for debt service savings. (c) Certificate of the City Without A Professional Utility Consultant. If required pursuant to the foregoing subsection (a)(4), a certificate may be delivered by the City (executed by the Chief Financial Officer) without a Professional Utility Consultant if Net Revenue for any consecutive 12-month period selected by the City out of the 24-month period next preceding the date of issuance of an additional series of Future Parity Bonds (which may be based upon unaudited financial statements of the City if the audit has not yet been completed) is sufficient to satisfy the Parity Requirement. Such Net Revenue may be adjusted to reflect the rates and charges effective on the date of such certificate if there has been any change in such rates and charges during or after such 12-consecutive-month period. (d) Certificate of a Professional Utility Consultant. Unless compliance with the requirements of subsection (a)(4) have been otherwise satisfied (as provided in (b) or (c) above), compliance with the Parity Requirement shall be demonstrated conclusively by a certificate of a Professional Utility Consultant. In computing Net Revenue for the purpose of certifying compliance with the Parity Requirement, the Professional Utility Consultant shall use as a basis the Net Revenue (which may be based upon unaudited financial statements of the City if the audit has not yet been completed) for any consecutive 12-month period selected by the City out of the 24-month period next preceding the date of issuance of an additional series of Future Parity Bonds. Such Net Revenue may be adjusted to reflect the rates and charges effective or approved by the City Council on the date of such certificate if there has been any change in such rates and charges during or after such 12-consecutive-month period, and as follows: -42- H - 49 (1) To include the Net Revenue derived from those customers of the City that have become customers during such 12-month period or thereafter and prior to the date of such certificate, adjusted to reflect a full year's Net Revenue from each such customer to the extent such Net Revenue is not otherwise included in any of the sources of Net Revenue described in this subsection (d). (2) To include the estimated annual Net Revenue to be derived from any person, firm, association, private or municipal corporation under any executed contract for service, which Net Revenue is not included in any of the sources of Net Revenue described in this subsection (d). (3) To include the estimated annual Net Revenue to be derived from the operation of any additions or improvements to or extensions of the Solid Waste System that are reasonably expected to be completed within one year after the date of such certificate and are not being paid for out of the proceeds of sale of such Future Parity Bonds being issued, and which Net Revenue is not otherwise included in any of the sources of Net Revenue described in this subsection (d). (4) To include the estimated annual Net Revenue to be derived from the operation of any additions or improvements to or extensions of the Solid Waste System that are reasonably expected to be completed within one year after the date of such certificate and are being paid for out of the proceeds of sale of such Future Parity Bonds being issued. (5) To reflect any other increases or decreases to Net Revenue that the Professional Utility Consultant determines to be appropriate, including but not limited to actual or reasonably anticipated changes in the Costs of Maintenance and Operation subsequent to such 12-month period. -43- H - 50 In the event the City will not derive any Revenue as a result of the construction of the additions, improvements or extensions being made or to be made to the Solid Waste System within the provisions of subparagraphs (3) and (4) immediately above, the estimated normal Costs of Maintenance and Operation of such additions, improvements and extensions shall be deducted from estimated annual Net Revenue. (e) Subordinate Lien Obligations. Nothing herein contained shall prevent the City from issuing revenue bonds or other obligations which are a charge upon the Revenue of the Solid Waste System junior or inferior to the payments required by this ordinance to be made out of such Revenue to pay and secure the payment of any outstanding Parity Bonds. Such junior or inferior obligations shall not be subject to acceleration. This prohibition against acceleration shall not be deemed to prohibit mandatory tender or other tender provisions with respect to variable rate obligations. (f) Refunding Obligations. Nothing herein contained shall prevent the City from issuing revenue bonds to refund maturing Parity Bonds for the payment of which moneys are not otherwise available. Section 15. Sale of Bonds. (a) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter pursuant to the terms of the Bond Purchase Contract. The Financial Advisor has advised the City Council that market conditions are fluctuating and, as a result, the most favorable market conditions may occur on a day other than a regular meeting date of the City Council. The City Council has determined that it would be in the best interest of the City to delegate to the Designated Representative for a limited time the authority to approve the final interest rates, aggregate -44- H - 51 principal amount, and principal amounts of each maturity of the Bonds, and redemption rights for the Bonds. The Designated Representative is hereby authorized to approve the final interest rates, aggregate principal amount, principal maturities, and redemption rights for the Bonds in the manner provided hereafter so long as: (1) the aggregate principal amount of the Bonds does not exceed $9,200,000, (2) the final maturity date for the Bonds is no later than November 1, 2039, (3) the aggregate purchase price for the Bonds shall not be less than 98% of the aggregate stated principal amount of the Bonds, excluding any original issue discount, and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 5.75%. Subject to the terms and conditions set forth in this section, the Designated Representative is hereby authorized to execute the Bond Purchase Contract. Following the execution of the Bond Purchase Contract, the Designated Representative shall provide a report to the City Council describing the final terms of the Bonds approved pursuant to the authority delegated in this section. The authority granted to the Designated Representative by this Section 15 shall expire 120 days after the effective date of this ordinance. If a Bond Purchase Contract for the Bonds has not been executed within 120 days after the effective date of this ordinance, the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such Bonds shall have been re-authorized by ordinance of the City Council. The ordinance re-authorizing the issuance and sale of such Bonds may be in the form of a new ordinance repealing this ordinance in whole -45- H - 52 or in part or may be in the form of an amendatory ordinance approving a bond purchase contract or establishing terms and conditions for the authority delegated under this Section 15. (b) Delivery of Bonds; Documentation. Upon the passage and approval of this ordinance, the proper officials of the City including the Designated Representative, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bonds to the Underwriter and further to execute all closing certificates and documents required to effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase Contract. Such documents may include, but are not limited to, documents related to a municipal bond insurance policy delivered by an insurer to insure the payment when due of the principal of and interest on the Bonds as provided therein, if such insurance is determined by the Designated Representative to be in the best interest of the City. (c) Preliminary and Final Official Statements. The Chief Financial Officer is hereby authorized to ratify and to deem final the preliminary Official Statement relating to the Bonds for the purposes of the Rule. The Chief Financial Officer is further authorized to ratify and to approve for purposes of the Rule, on behalf of the City, the Official Statement relating to the issuance and sale of the Bonds and the distribution of the Official Statement pursuant thereto with such changes, if any, as may be deemed by him to be appropriate. Section 16. Undertaking to Provide Ongoing Disclosure. This Section 16 constitutes the City's written undertaking for the benefit of the owners and beneficial owners of the Bonds as required by Section (b)(5) of the Rule. (a) Financial Statements/Operating Data. The City agrees to provide or cause to be provided to the MSRB, in accordance with the Rule, the following annual financial information -46- H - 53 and operating data for the prior Fiscal Year (commencing in 2014 for the Fiscal Year ended December 31, 2013): (1) Annual financial statements of the Solid Waste System, which statements may or may not be audited, prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds in the table titled"Solid Waste Utility Fund—Net Revenue Available for Debt Service"; (2) The principal amount of Parity Bonds and debt service coverage for Parity Bonds; (3) Total number of residential and commercial customers and generally of the type included in the official statement for the Bonds in the table titled "Number of City Collection Customers by Class"; and (4) Revenues by service and generally of the type included in the official statement for the Bonds in the table titled"Revenues by Source". Items (2) —(4) shall be required only to the extent that such information is not included in the annual financial statements provided pursuant to (1). Such annual information and operating data described above shall be provided on or before the expiration of nine months after the end of the City's Fiscal Year. The City's Fiscal Year currently ends on December 31. The City may adjust such Fiscal Year by providing written notice of the change of Fiscal Year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or filed with the Commission. -47- H - 54 If not provided as part of the annual financial information discussed above, the City shall provide to the MSRB the City's audited annual financial statement prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute)when and if available. (b) Listed Events. The City agrees to provide or cause to be provided to the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the event, notice of the occurrence of any of the following events with respect to the Bonds: • Principal and interest payment delinquencies; • Non-payment related defaults, if material; • Unscheduled draws on debt service reserves reflecting financial difficulties; • Unscheduled draws on credit enhancements reflecting financial difficulties; • Substitution of credit or liquidity providers, or their failure to perform; • Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; • Modifications to the rights of Bondholders, if material; • optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856, if material, and tender offers; • Defeasances; • Release, substitution, or sale of property securing repayment of the Bonds, if material; -48- H - 55 • Rating changes; • Bankruptcy, insolvency, receivership or similar event of the City; • The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and • Appointment of a successor or additional trustee or the change of name of a trustee, if material. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises that no property secures payment of the Bonds. (c) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided to the MSRB, in a timely manner, notice of the City's failure to provide the annual financial information described in subsection (a) above on or prior to the date set forth in subsection (a) above. (d) Format for Filings with the MSRB. All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. (e) Termination/Modification. The City's obligations to provide annual financial information and notices of listed events shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds. Any provision of this section shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of -49- H - 56 the Rule requiring that provision is invalid, has been repealed retroactively or otherwise does not apply to the Bonds; and (2)notifies the MSRB of such opinion and the cancellation of the provision. Notwithstanding any other provision of this ordinance, the City may amend this Section 16, without the consent of bondowners, with an approving opinion of nationally recognized bond counsel and in accordance with the Rule. In the event of any amendment of a provision of this Section 16, the City will describe the amendment in the next annual report, and will include a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1)notice of such change will be given in the same manner as for a listed event under subsection (b), and (2)the annual report for the year in which the change is made will present a comparison (in narrative form and also, if feasible, in quantitative form)between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (f) Remedies Under This Section. The right of any bondowner or beneficial owner of Bonds to enforce the provisions of this section are limited to a right to obtain specific enforcement of the City's obligations hereunder, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds. For purposes of this Section 16, "beneficial owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. -50- H - 57 Section 17. Supplements and Amendments. (a) The City Council from time to time and at any time may adopt an ordinance or ordinances supplemental hereof, which ordinance or ordinances thereafter shall become a part of this ordinance, for any one or more or all of the following purposes: (1) To add to the covenants and agreements of the City in this ordinance other covenants and agreements thereafter to be observed, which shall not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect, or to surrender any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this ordinance in regard to such matters or questions as the City Council may deem necessary or desirable and not inconsistent with this ordinance and which shall not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. (3) To amend or supplement any provision contained in this ordinance for the purpose of obtaining or maintaining a rating on the Bonds so long as such amendment or supplement is not inconsistent with this ordinance and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. Any such supplemental ordinance of the City Council may be adopted without the consent of the owners of any Bonds at any time outstanding, notwithstanding any of the provisions of subsection (b) of this section; provided, however, that the City shall obtain an opinion of nationally recognized bond counsel to the effect that such supplemental ordinance complies with this subsection (a) and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. -51- H - 58 (b) With the consent of the owners of not less than 60% in aggregate principal amount of the Parity Bonds at the time outstanding, the City Council may adopt an ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this ordinance or of any supplemental ordinance; provided, however, that no such supplemental ordinance shall: (1) Extend the fixed maturity of any Parity Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owner of each bond so affected; or (2) Reduce the aforesaid percentage of bondowners required to approve any such supplemental ordinance, without the consent of the owners of all of the Parity Bonds then outstanding. It shall not be necessary for the consent of bondowners under this subsection (b) to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. (c) Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this ordinance shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations of the City under this ordinance and all owners of Bonds outstanding hereunder shall thereafter be determined, exercised and enforced thereunder, subject in all respects to such modification and amendments, and all the terms and conditions of any such supplemental ordinance shall be deemed to be part of the terms and conditions of this ordinance for any and all purposes. -52- H - 59 Section 18. Lost or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City and the Bond Registrar with indemnity satisfactory to both. Section 19. Severability. If a court of competent jurisdiction declares that any one or more of the covenants and agreements in this ordinance to be performed by the City are contrary to law, then such covenant or covenants, agreement or agreements, will be null and void and will be deemed separable from the remaining covenants and agreements in this ordinance and will in no way affect the validity of other provisions of this ordinance or of the Bonds. Section 20. Effective Date. This ordinance will become effective five (5) days from and after its passage and publication. -53- H - 60 PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting of the City Council held on June 3, 2014. CITY OF PORT ANGELES, WASHINGTON Mayor ATTEST: City Clerk APPROVED AS TO FORM: Pacifica Law Group LLP, Bond Counsel PUBLISHED: , 2014 -54- H - 61 CERTIFICATE OF CITY CLERK I, the undersigned, City Clerk of the City of Port Angeles, Washington, DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. (the "Ordinance") of the City, duly passed at a regular meeting of the City Council (the "Council") of the City held on June 3, 2014. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of June, 2014. City Clerk H - 62 CITY OF PORT ANGELES, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS, 2014 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. PASSED JUNE 3, 2014 PREPARED BY: PACIFICA LAW GROUP LLP Seattle, Washington H - 63 CITY OF PORT ANGELES, WASHINGTON ORDINANCE NO. TABLE OF CONTENTS* Page Section 1. Definitions and Interpretation of Terms...................................................................2 Section 2. Authorization of the Project.....................................................................................6 Section 3. Authorization of Bonds and Bond Details...............................................................7 Section 4. Registration, Exchange and Payments.....................................................................7 Section 5. Redemption Prior to Maturity and Purchase of Bonds ..........................................12 Section6. Form of Bonds .......................................................................................................16 Section7. Execution of Bonds................................................................................................18 Section 8. Application of Bond Proceeds ...............................................................................19 Section9. Tax Covenants .......................................................................................................19 Section 10. Bond Fund and Provision for Tax Levy Payments ................................................21 Section11. Defeasance.............................................................................................................22 Section12. Sale of Bonds.........................................................................................................23 Section 13. Preliminary and Final Official Statements.............................................................25 Section 14. Undertaking to Provide Ongoing Disclosure.........................................................25 Section 15. Lost, Stolen or Destroyed Bonds ...........................................................................30 Section 16. Severability; Ratification .......................................................................................30 Section 17. Effective Date ........................................................................................................30 * This Table of Contents is provided for convenience only and is not a part of this ordinance. -1- 05/15/14 H - 64 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ANGELES, WASHINGTON, AUTHORIZING THE ISSUANCE OF LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,200,000, TO FINANCE COSTS RELATED TO IMPROVING AND STABILIZING THE PORT ANGELES LANDFILL, TO CAPITALIZE INTEREST ON THE BONDS, AND TO PAY COSTS OF ISSUING THE BONDS; PROVIDING THE FORM, TERMS AND COVENANTS OF THE BONDS; PROVIDING FOR THE DISPOSITION OF THE PROCEEDS OF SALE OF THE BONDS; AND DELEGATING AUTHORITY TO APPROVE THE FINAL TERMS OF THE BONDS. WHEREAS, the City of Port Angeles, Washington, a municipal corporation of the State of Washington (the "City"), owns, maintains and operates a solid waste utility system for the collection and disposal of garbage and recycling (the "Solid Waste System"); and WHEREAS, the Port Angeles Landfill (the "Landfill"), a municipal landfill owned by the City and operated as part of the Solid Waste System, is located on a bluff overlooking the Strait of Juan de Fuca; and WHEREAS, due to wave action along the shoreline of the Strait of Juan de Fuca, the bluff has eroded and continues to erode, resulting in failures of the bluff slope and refuse being deposited on the beach; and WHEREAS, in response to the erosion, the City has implemented a managed retreat of the Landfill away from the shoreline, which includes relocating refuse away from the bluff, modifying, improving, and reinforcing the existing seawall; and making other improvements and betterments to the Landfill (the "Project"); and WHEREAS, the Project will be financed from funds from the Washington State H - 65 Department of Ecology, proceeds of the City's Solid Waste Utility Revenue Bonds, 2014, other City funds, and other available sources; and WHEREAS, the City is authorized pursuant to chapters 35.92 and 39.46 RCW to issue limited tax general obligation bonds for the purpose of financing a portion of the costs of the Project; and WHEREAS, after due consideration it appears to this City Council that it is in the best interest of the City to authorize the issuance and sale of limited tax general obligation bonds to pay a portion of the costs of the Project, to capitalize interest on the bonds, and to pay costs of issuance for the bonds, as set forth herein; and WHEREAS, this City Council wishes to delegate authority to the Chief Financial Officer (the "Designated Representative"), for a limited time, to approve the interest rates, maturity dates, redemption terms and principal maturities for the bonds within the parameters set by this ordinance; and WHEREAS, the City expects to receive a proposal from Piper Jaffray & Co. (the "Underwriter") and now desires to issue and sell the bonds to the Underwriter as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions and Interpretation of Terms. (a) Definitions. As used in this ordinance, the following words shall have the following meanings: Beneficial Owner means any person that has or shares the power, directly or indirectly to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries). -2- H - 66 Bond Fund means the "City of Port Angeles, Washington, 2014 General Obligation Bond Fund" and the accounts therein authorized to be created pursuant to Section 10 of this ordinance. Bond Purchase Contract means the contract for the purchase of the Bonds between the Underwriter and the City, executed pursuant to Section 12 of this ordinance. Bond Register means the registration books showing the name, address and tax identification number of each Registered Owner of the Bonds, maintained pursuant to Section 149(a) of the Code. Bond Registrar means, initially, the fiscal agency of the State of Washington, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and paying interest on and principal of the Bonds. Bond Year means each one-year period that ends on the date selected by the City. The first and last Bond Years may be short periods. If no day is selected by the City before the earlier of the final maturity date of the Bonds or the date that is five years after the date of issuance of the Bonds, Bond Years end on each anniversary of the date of issue and on the final maturity date of the Bonds. Bonds mean the City's Limited Tax General Obligation Bonds, 2014, authorized to be issued pursuant to this ordinance in the aggregate principal amount of not to exceed $9,200,000. Chief Financial Officer means the duly appointed and acting Chief Financial Officer of the City or the successor to the duties of that office. City means the City of Port Angeles, a municipal corporation duly organized and existing under the laws of the State of Washington. -3- H - 67 City Council means the Port Angeles City Council, as the general legislative body of the City as the same is duly and regularly constituted from time to time. Code means the federal Internal Revenue Code of 1986, as amended, and applicable regulations. Commission means the United States Securities and Exchange Commission. Designated Representative means the Chief Financial Officer of the City, or any successor to the functions of such office. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Bonds pursuant to Section 4 of this ordinance. Financial Advisor means A. Dashen & Associates, or its successors. Government Obligations means those obligations now or hereafter defined as such in chapter 39.53 RCW, as this chapter may be hereafter amended or restated. Landfill means the Port Angeles Landfill, a municipal landfill owned by the City and operated as part of its Solid Waste System. Letter of Representations means the Blanket Issuer Letter of Representations given by the City to DTC, as amended from time to time. MSRB means the Municipal Securities Rulemaking Board or any successors to its functions. Net Proceeds, when used with reference to the Bonds, means the principal amount of such Bonds, plus accrued interest and original issue premium, if any, and less original issue discount, if any. -4- H - 68 Private Person means any natural person engaged in a trade or business or any trust, estate,partnership, association, company or corporation. Private Person Use means the use of property in a trade or business by a Private Person if such use is other than as a member of the general public. Private Person Use includes ownership of the property by the Private Person as well as other arrangements that transfer to the Private Person the actual or beneficial use of the property (such as a lease, management or incentive payment contract or other special arrangement) in such a manner as to set the Private Person apart from the general public. Use of property as a member of the general public includes attendance by the Private Person at municipal meetings or business rental of property to the Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the rental paid by any Private Person who desires to rent the property. Use of property by nonprofit community groups or community recreational groups is not treated as Private Person Use if such use is incidental to the governmental uses of property, the property is made available for such use by all such community groups on an equal basis and such community groups are charged only a de minimis fee to cover custodial expenses. Project means certain improvements to the Solid Waste System, including but not limited to relocating refuse; modifying, improving, and reinforcing an existing seawall at the Landfill; and making other improvements and betterments to the Landfill. Project Account means the account created pursuant to Section 8 of this ordinance. Registered Owner means the person named as the registered owner of a Bond in the Bond Register. For so long as the Bonds are held in book-entry only form, DTC or its nominee will be deemed to be the sole Registered Owner. -5- H - 69 Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. Underwriter means Piper Jaffray & Co., or its successors. (b) Interpretation. In this ordinance, unless the context otherwise requires: (1) The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this ordinance; (2) Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words importing the singular number shall mean and include the plural number and vice versa; (3) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (4) Any headings preceding the text of the several articles and sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and (5) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. Authorization of the Project. The City Council hereby finds that the public interest, welfare and convenience require certain improvements to the Landfill, including but not limited to relocating refuse; modifying, improving, and reinforcing an existing seawall; -6- H - 70 and making other improvements and betterments to the Landfill (the "Project"). Any remaining costs of the Project shall be paid from other City funds legally available for such purposes. Section 3. Authorization of Bonds and Bond Details. For the purpose of paying the costs of the Project, capitalizing interest on the Bonds, and paying costs of issuance of the Bonds, the City shall issue and sell its limited tax general obligation bonds in the aggregate principal amount not to exceed $9,200,000 (the "Bonds") as set forth herein. The Bonds shall be general obligations of the City, shall be designated "City of Port Angeles, Washington, Limited Tax General Obligation Bonds, 2014[ ]" with additional series designation or other designation as determined to be necessary by the Designated Representative. The Bonds shall be dated as of their date of delivery; shall be fully registered as to both principal and interest; shall be in the denomination of$5,000 each, or any integral multiple thereof, within a maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; and shall bear interest from their date payable on the dates and commencing as provided in the Bond Purchase Contract; and shall mature on the dates and in the principal amounts set forth in the Bond Purchase Contract and as approved by the Designated Representative pursuant to Section 12 of this ordinance. Section 4. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies. The City shall cause a bond register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration or transfer of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option of the Chief -7- H - 71 Financial Officer upon prior notice to the Bond Registrar and a successor Bond Registrar appointed by the Chief Financial Officer. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication of the Bonds. (b) Registered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes (except as provided in Section 14 of this ordinance), and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 4(h), but such Bond may be transferred as herein provided. All such payments made as described in Section 4(h) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letters of Representations. The Bonds initially shall be held by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City has executed and delivered to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice which is -8- H - 72 permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Bonds are held by a depository, DTC or its successor depository or its nominee shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Bonds. (d) Use of Depository. (1) The Bonds shall be registered initially in the name of "Cede & Co.", as nominee of DTC, with one Bond maturing on each of the maturity dates for the Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the Chief Financial Officer pursuant to subsection (2) below or such substitute depository's successor; or (C) to any person as provided in subsection (4)below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the Chief Financial Officer to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Chief Financial Officer may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. -9- H - 73 (3) In the case of any transfer pursuant to clause(A) or (B) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the Chief Financial Officer, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Chief Financial Officer. (4) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or(B) the Chief Financial Officer determines that it is in the best interest of the beneficial owners of the Bonds that such owners be able to obtain physical Bond certificates, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held by a depository. The Chief Financial Officer shall deliver a written request to the Bond Registrar, together with a supply of physical Bonds, to issue Bonds as herein provided in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the Chief Financial Officer to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to -10- H - 74 the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity, and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity, and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to register the transfer of or to exchange any Bond during the 15 days preceding any principal payment or redemption date. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners or beneficial owners of Bonds. (g) Registration Covenant. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (h) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day months. For so long as all Bonds are held by a depository, payments of principal thereof and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer held by a depository, interest on the -11- H - 75 Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date, or upon the written request of a Registered Owner of more than $1,000,000 of Bonds (received by the Bond Registrar at least 15 days prior to the applicable payment date), such payment shall be made by the Bond Registrar by wire transfer to the account within the United States designated by the Registered Owner. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 5. Redemption Prior to Maturity and Purchase of Bonds. (a) Mandatory Redemption of Term Bonds and Optional and Extraordinary Optional Redemption, if any. The Bonds shall be subject to optional redemption and extraordinary optional redemption on the dates, at the prices and under the terms set forth in the Bond Purchase Contract approved by the Designated Representative pursuant to Section 12. The Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Bond Purchase Contract and as approved by the Designated Representative pursuant to Section 12. (b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds offered to it at any time at a price deemed reasonable by the Chief Financial Officer. (c) Selection of Bonds for Redemption. For as long as the Bonds are held in book-entry only form, the selection of particular Bonds within a maturity to be redeemed shall be made in accordance with the operational arrangements then in effect at DTC. If the Bonds are no longer held by a depository, the selection of such Bonds to be redeemed and the surrender and reissuance thereof, as applicable, shall be made as provided in the following provisions of this subsection (c). If the City redeems at any one time fewer than all of the Bonds having the same -12- H - 76 maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot (or in such manner determined by the Bond Registrar)in increments of$5,000. In the case of a Bond of a denomination greater than $5,000, the City and the Bond Registrar shall treat each Bond as representing such number of separate Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption. (1) Official Notice. For so long as the Bonds are held in by a depository, notice of redemption shall be given in accordance with the operational arrangements of DTC as then in effect, and neither the City nor the Bond Registrar will provide any notice of redemption to any beneficial owners. The notice of redemption may be conditional. Thereafter (if the Bonds are no longer held by a depository), notice of redemption shall be given in the manner hereinafter provided. Unless waived by any owner of Bonds to be redeemed, official notice of any such redemption (which redemption may be conditioned by the Bond Registrar on the receipt of sufficient funds for redemption or otherwise) shall be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Registered Owner to the Bond Registrar. -13- H - 77 All official notices of redemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, (C) if fewer than all outstanding Bonds are to be redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (D) that unless conditional notice of redemption has been given and such conditions have either been satisfied or waived, on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (E) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Bond Registrar. On or prior to any redemption date, unless such redemption has been rescinded or revoked, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. The City retains the right to rescind any redemption notice and the related optional redemption of Bonds by giving notice of rescission to the affected registered owners at any time on or prior to the scheduled redemption date. Any notice of optional redemption that is so rescinded shall be of no effect, and the Bonds for which the notice of optional redemption has been rescinded shall remain outstanding. (2) Effect of Notice; Bonds Due. If an unconditional notice of redemption has been given or if the conditions set forth in a conditional notice of redemption have been satisfied or waived, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become -14- H - 78 due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Bonds which have been redeemed shall be canceled by the Bond Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice shall be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (A) the CUSIP numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C)the rate of interest borne by each Bond being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption may be sent at least 20 days before the redemption date to each party entitled to receive notice pursuant to Section 14 and with such additional information as the City shall deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Bonds. (4) Amendment of Notice Provisions. The foregoing notice provisions of this Section 5, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. -15- H - 79 Section 6. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF PORT ANGELES LIMITED TAX GENERAL OBLIGATION BOND, 2014 INTEREST RATE: % MATURITY DATE: CUSIP NO.: REGISTERED OWNER: CEDE& CO. PRINCIPAL AMOUNT: The City of Port Angeles, Washington (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from , 20 , or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on , and semiannually thereafter on the first days of each succeeding and . Both principal of and interest on this bond are payable in lawful money of the United States of America. The fiscal agency of the State of Washington has been appointed by the City as the authenticating agent, paying agent and registrar for the bonds of this issue (the "Bond Registrar"). For so long as the bonds of this issue are held in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of The Depository Trust Company ("DTC") referred to in the Blanket Issuer Letter of Representations (the "Letter of Representations") from the City to DTC. The bonds of this issue are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and Ordinance No. duly passed by the City Council on June 3, 2014 (the "Bond Ordinance"). Capitalized terms used in this bond have the meanings given such terms in the Bond Ordinance. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar or its duly designated agent. This bond is one of an authorized issue of bonds of like date, tenor, rate of interest and date of maturity, except as to number and amount in the aggregate principal amount of $ (the "Bonds") and is issued pursuant to the Bond Ordinance to provide funds to pay the cost of improving and stabilizing the Port Angeles Landfill, capitalizing interest on the Bonds, and paying costs of issuance for the Bonds. -16- H - 80 The Bonds are subject to redemption prior to maturity as provided in the Bond Purchase Contract. The Bonds may be transferred and exchanged upon surrender to the Bond Registrar as provided in the Bond Ordinance. The Bonds are not "private activity bonds" as such term is defined in the Internal Revenue Code of 1986, as amended (the "Code"). The City has not designated the Bonds as "qualified tax-exempt obligations"within the meaning of Section 265(b)(3)(B) of the Code. The City hereby irrevocably covenants and agrees with the owner of this bond that it will include in its annual budget and levy taxes annually, within and as a part of the tax levy permitted to the City without a vote of the electorate, upon all the property subject to taxation in amounts sufficient, together with other money legally available therefor, to pay the principal of and interest on this bond as the same shall become due. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The pledge of tax levies for payment of principal of and interest on the bonds may be discharged prior to maturity of the bonds by making provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and that the issuance of this bond and the bonds of this issue does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Port Angeles, Washington, has caused this bond to be signed by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of the City Clerk, and seal of the City to be impressed or reproduced hereon, all as of , 2014. CITY OF PORT ANGELES, WASHINGTON ( SEAL) By [Manual or Facsimile Signature] Mayor Attest: [Manual or Facsimile Signature] City Clerk CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Limited Tax General Obligation Bonds, 2014, of the City of Port Angeles, Washington, dated 2014, as described in the within mentioned Bond Ordinance. -17- H - 81 WASHINGTON STATE FISCAL AGENT, as Registrar By THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as subcontractor to The Bank of New York Mellon, fiscal agent for the State of Washington By Authorized Officer Section 7. Execution of Bonds. The Bonds shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor and the City Clerk and shall have the seal of the City impressed or a facsimile thereof imprinted, or otherwise reproduced thereon. In the event any officer who shall have signed or whose facsimile signatures appear on any of the Bonds shall cease to be such officer of the City before said Bonds shall have been authenticated or delivered by the Bond Registrar or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issuance, shall be as binding upon the City as though said person had not ceased to be such officer. Any Bond may be signed and attested on behalf of the City by such persons who, at the actual date of execution of such Bond shall be the proper officer of the City, although at the original date of such Bond such persons were not such officers of the City. Only such Bonds as shall bear thereon a Certificate of Authentication manually executed by an authorized representative of the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. -18- H - 82 Section 8. Application of Bond Proceeds. The Chief Financial Officer is hereby authorized to create a Project Account, and subaccounts therein as necessary, for the purposes set forth in this section. A portion of the proceeds of the Bonds shall be deposited in the Project Account in the amounts specified in the closing memorandum prepared in connection with the issuance of the Bonds. Such proceeds shall be used to pay or reimburse the City for the costs of the Project, to capitalize interest on the Bonds, and to pay costs of issuance of the Bonds. The Chief Financial Officer shall invest money in the Project Account and the subaccounts contained therein in such obligations as may now or hereafter be permitted to cities of the State by law and which will mature prior to the date on which such money shall be needed. Upon completion of the Project, Bond proceeds (including interest earnings thereon) may be used for other capital projects of the City as approved by the City Council or shall be transferred to the Bond Fund to pay principal on the Bonds. Section 9. Tax Covenants. The City covenants that it will not take or permit to be taken on its behalf any action that would adversely affect the exemption from federal income taxation of the interest on the Bonds and will take or require to be taken such acts as may reasonably be within its ability and as may from time to time be required under applicable law to continue the exemption from federal income taxation of the interest on the Bonds. (a) Arbitrage Covenant. Without limiting the generality of the foregoing, the City covenants that it will not take any action or fail to take any action with respect to the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which, if such use had been reasonably expected on the date of delivery of the Bonds to the initial -19- H - 83 purchasers thereof, would have caused the Bonds to be "arbitrage bonds" within the meaning of such term as used in Section 148 of the Code. The City represents that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not be relied upon. The City will comply with the requirements of Section 148 of the Code and the applicable regulations thereunder throughout the term of the Bonds. (b) Private Person Use Limitation. The City covenants that for as long as the Bonds are outstanding, it will not permit: (1) More than 10% of the Net Proceeds of the Bonds to be used for any Private Person Use; and (2) More than 10% of the principal or interest payments on the Bonds in a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City) in respect of property, or borrowed money, used or to be used for any Private Person Use. The City further covenants that, if: (3) More than five percent of the Net Proceeds of the Bonds are to be used for any Private Person Use; and (4) More than five percent of the principal or interest payments on the Bonds in a Bond Year are (under the terms of this ordinance or any underlying arrangement) directly or indirectly: -20- H - 84 (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the City)in respect of property, or borrowed money, used or to be used for any Private Person Use, then, (i) any Private Person Use of the projects described in subsection (3) hereof or Private Person Use payments described in subsection (4) hereof that is in excess of the five percent limitations described in such subsections (3) or(4)will be for a Private Person Use that is related to the state or local governmental use of the projects financed and/or refinanced with the Bonds, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Bonds used for the state or local governmental use portion of the projects to which the Private Person Use of such portion of the projects relates. The City further covenants that it will comply with any limitations on the use of the projects financed and/or refinanced with the Bonds by other than state and local governmental users that are necessary, in the opinion of nationally recognized bond counsel, to preserve the tax exemption of the interest on the Bonds. (c) Modification of Tax Covenants. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Bonds. To that end, the provisions of this section may be modified or eliminated without any requirement for formal amendment thereof upon receipt of an opinion of nationally recognized bond counsel that such modification or elimination will not adversely affect the tax exemption of interest on any Bonds. Section 10. Bond Fund and Provision for Tax Levy Payments. The City hereby authorizes the creation of a fund to be used for the payment of debt service on the Bonds, -21- H - 85 designated as the "City of Port Angeles, Washington, 2014 General Obligation Bond Fund" (the "Bond Fund"), and within such fund separate accounts as determined to be necessary by the Chief Financial Officer, for the purpose of paying debt service on the Bonds. No later than the date each payment of principal of and/or interest on the Bonds matures or becomes due and payable, the City shall transmit sufficient funds, from the Bond Fund or from other legally available sources to the Bond Registrar for the payment of such principal and/or interest. Money in the Bond Fund not needed to pay the interest or principal next coming due may temporarily be deposited in legal investments for City funds. The City hereby irrevocably covenants and agrees for as long as any of the Bonds are outstanding and unpaid that each year it will include in its budget and levy an ad valorem tax upon all the property within the City subject to taxation in an amount that will be sufficient, together with all other revenues and money of the City legally available for such purposes, to pay the principal of and interest on the Bonds as the same shall become due. The City hereby irrevocably pledges that the annual tax provided for herein to be levied for the payment of such principal and interest shall be within and as a part of the regular property tax levy permitted to cities, and that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal of and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of said taxes and for the prompt payment of the principal of and interest on the Bonds as the same shall become due. Section 11. Defeasance. In the event that the City, in order to effect the payment, retirement or redemption of any Bond, sets aside in the Bond Fund or in another special account, -22- H - 86 cash or noncallable Government Obligations, or any combination of cash and/or noncallable Government Obligations, in amounts and maturities which, together with the known earned income therefrom, are sufficient to redeem or pay and retire such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and such cash and/or noncallable Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on such Bond. The owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive payment of principal, premium, if any, and interest from the Bond Fund or such special account, and such Bond shall be deemed to be not outstanding under this ordinance. The City shall give written notice of defeasance to the owners of all Bonds so provided for within 30 days after the defeasance and to each party entitled to receive notice in accordance with Section 14. Section 12. Sale of Bonds. (a) Bond Sale. The Bonds shall be sold at negotiated sale to the Underwriter pursuant to the terms of the Bond Purchase Contract. The Financial Advisor has advised the City Council that market conditions are fluctuating and, as a result, the most favorable market conditions may occur on a day other than a regular meeting date of the City Council. The City Council has determined that it would be in the best interest of the City to delegate to the Designated Representative for a limited time the authority to approve the final interest rates, aggregate principal amount, and principal amounts of each maturity of the Bonds, and redemption rights for the Bonds. -23- H - 87 The Designated Representative is hereby authorized to approve the final interest rates, aggregate principal amount, principal maturities, and redemption rights for the Bonds in the manner provided hereafter so long as: (1) the aggregate principal amount of the Bonds does not exceed $9,200,000, (2) the final maturity date for the Bonds is no later than November 1, 2039, (3) the aggregate purchase price for the Bonds shall not be less than 98% of the aggregate stated principal amount of the Bonds, excluding any original issue discount, and (4) the true interest cost for the Bonds (in the aggregate) does not exceed 5.15%. Subject to the terms and conditions set forth in this section, the Designated Representative is hereby authorized to execute the Bond Purchase Contract. Following the execution of the Bond Purchase Contract, the Designated Representative shall provide a report to the City Council describing the final terms of the Bonds approved pursuant to the authority delegated in this section. The authority granted to the Designated Representative by this Section 12 shall expire 120 days after the effective date of this ordinance. If a Bond Purchase Contract for the Bonds has not been executed within 120 days after the effective date of this ordinance, the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be issued nor their sale approved unless such Bonds shall have been re-authorized by ordinance of the City Council. The ordinance re-authorizing the issuance and sale of such Bonds may be in the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory ordinance approving a bond purchase contract or establishing terms and conditions for the authority delegated under this Section 12. -24- H - 88 (b) Delivery of Bonds; Documentation. Upon the passage and approval of this ordinance, the proper officials of the City including the Designated Representative, are authorized and directed to undertake all action necessary for the prompt execution and delivery of the Bonds to the Underwriter and further to execute all closing certificates and documents required to effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase Contract. Such documents may include, but are not limited to, documents related to a municipal bond insurance policy delivered by an insurer to insure the payment when due of the principal of and interest on the Bonds as provided therein, if such insurance is determined by the Designated Representative to be in the best interest of the City. Section 13. Preliminary and Final Official Statements. The Chief Financial Officer is hereby authorized to ratify and to deem final the preliminary Official Statement relating to the Bonds for the purposes of the Rule. The Chief Financial Officer is further authorized to ratify and to approve for purposes of the Rule, on behalf of the City, the Official Statement relating to the issuance and sale of the Bonds and the distribution of the Official Statement pursuant thereto with such changes, if any, as may be deemed by him to be appropriate. Section 14. Undertaking to Provide Ongoing Disclosure. (a) Contract/Undertaking. This Section 14 constitutes the City's written undertaking for the benefit of the owners, including Beneficial Owners, of the Bonds as required by Section (b)(5) of the Rule. (b) Financial Statements/Operating Data. The City agrees to provide or cause to be provided to the MSRB, the following annual financial information and operating data for the prior fiscal year(commencing in 2014 for the fiscal year ended December 31, 2013): -25- H - 89 1. Annual financial statements, which statements may or may not be audited, showing ending fund balances for the City's general fund prepared in accordance with the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under the headings (or similar headings) "General Fund Statement of Revenues, Expenditures and Changes in Fund Balance" and "General Fund Balance Sheet"; 2. The assessed valuation of taxable property in the City; 3. Ad valorem taxes due and percentage of taxes collected; 4. Property tax levy rate per $1,000 of assessed valuation; and 5. Outstanding general obligation debt of the City. Items 2-5 shall be required only to the extent that such information is not included in the annual financial statements. Such annual information and operating data described above shall be provided on or before the expiration of nine months after the end of the City's fiscal year. The City's fiscal year currently ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or filed with the Commission. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute)when and if available to the MSRB. -26- H - 90 (c) Listed Events. The City agrees to provide or cause to be provided to the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the event, notice of the occurrence of any of the following events with respect to the Bonds: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to the rights of Bondholders, if material; 8. Optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 11. Rating changes; -27- H - 91 12. Bankruptcy, insolvency, receivership or similar event of the City; 13. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises that no debt service reserves, credit enhancement, or property secures payment of the Bonds. (d) Format for Filings with the MSRB. All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. (e) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the annual financial information described in Subsection (b) above on or prior to the date set forth in Subsection (b) above. (f) Termination/Modification. The City's obligations to provide annual financial information and notices of listed events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. Any provision of this section shall be null and -28- H - 92 void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule that requires that provision is invalid, has been repealed retroactively or otherwise does not apply to the Bonds and (2)notifies the MSRB of such opinion and the cancellation of this section. The City may amend this section, without the consent of bondowners, with an opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any amendment of this section, the City shall describe such amendment in the next annual report, and shall include, a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (A)notice of such change shall be given in the same manner as for a listed event under subsection (c), and (B) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form)between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (g) Remedies Under This Section. The right of any bondowner or Beneficial Owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations under this section, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds. (h) No Default. Except as otherwise disclosed in the City's official statement relating to the Bonds, the City is not and has not been in default in the performance of its obligations of any prior undertaking for ongoing disclosure with respect to its obligations. -29- H - 93 Section 15. Lost, Stolen or Destroyed Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership thereof, and furnishes the City and the Bond Registrar with indemnity satisfactory to both. Section 16. Severability, Ratification. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. Section 17. Effective Date. This ordinance will become effective five (5) days from and after its passage and publication. -30- H - 94 PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting of the City Council held on June 3, 2014. CITY OF PORT ANGELES, WASHINGTON Mayor ATTEST: City Clerk APPROVED AS TO FORM: Pacifica Law Group LLP, Bond Counsel PUBLISHED: , 2014 -31- H - 95 CERTIFICATE I, the undersigned, City Clerk of the City of Port Angeles, Washington, DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. (the "Ordinance") of the City, duly passed at a regular meeting of the City Council (the "Council") of the City held on June 3, 2014. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of June, 2014. City Clerk H - 96 4� � �J C) ct 4mvJ V) Ct ct �Z. OL ` z � . ��� tA Cn ,E�, (A (A 00 0) LLJ LU Ui LLJ LLJ ui ui ui z z buC t3 lz t rn 0 (Z) 0 4— > 33 oa pwwm( V) (A cc u LZ iri V) 0 75 u 4-J u CL 0 =3 0 ct to --C: "n 0 w N v ?: a) > 0 m o 0 r < > 4-J 0 cry 4-J 75 co o W cu 4J 0 Co u < u r) 4-J 1D 4-J u CL Lf) M 0 a FMMM4 0 FMW4 U CL LL Ln E E V) > c: 0 L- 0 CL M 4-J U E E > 4-J Ln 0 4-J IV > 0 L- s- +--, E Ln 4L-n E Ln C: 4-J M >. 0 Lo-_ E -S-- w -Z u E M Q) E E E v� 0 0- > (1) (1) (1) > V buo 0 0 0 > > L- (1) 0 0 4-J L- m a S1 E• 4-J O C- ul 4-J (3) 3: V) -0 0 4-J o 4-j 0 fo 4-J +-j cn L- E u L- 4-J L- 0 L- Ul -0 E (L) (1) W 4-J M 0 4-J 4-J CL to V) V) V) V) 4-J V) c (1) E ct 0- E bn C- 0- 4- cn 0 ❑ Ln L- 4-J 0 N 4-J 0 y= Q N N Q CL V 4-J (1) M 4- cn 0 L- M 0 4-J 4-J 4-J 0 ro 75 c c- U LL L- U LL U LL O (1 4-J V)) ro rw,4 C- (D v) C- D CC d CL C: ' a' O Q� O O X N 4-+ V) N 4+ � N c6 •M C qp O 4-J 4-=- 4-, v O b00 > (D (U -8 .N ul O +-' O c6 L— -J O U O .� O bio N 4-J b.0 O QJ O r-4 u 4-J C- t�A U •> X cn O u O ate' •— V) ca cc Q M � U C: E V) y--- T3 ca W Q O 4-J O •` ) X O ct C) co Q LL C1C t/1 LL a-.+ bA Co u o •� o can c6 -N O N s2 vi 0 4-J O ® -� O 4 V) N � N � LL Cz1J -N O cn N N CU O to CU C-) LL- t2 to Lj a-+ i 4-+ V) O c O : N U Q V E •� •� O =3 N -� a; ca CU E 4 C: > � w O EMMW4 j 0 V) a)a) V) > (2) U 0 0 QL >- V) ro _0 -a > ro > 4-J 0 *zj- Un Ul 4-j 4-j c 0 u 4-j E n— E 0 U*) E L/) >- u C) 4-J ro 0 U 0- 0 E u 0 0 cn " —a 0 0 (1) -J E M x V) 0 4-j >- m Q) 0 (f) ro 4 ro 0 > 4-J 4- 4-) 4-J Cll V) .4..j 0 L- 0 C: Ln u Ul) 0 4-J L- 0 0 a) 0 4-J 4-► C: ro 4-) 4-J U*) 4-J 0 c (1) W 4-J 0 Lt) > E --,,e :3 4- QL (1) .c 4-J L- 4-J 0 ro _0 V) Ul) rO E a PMMP4 LI) 4- ro -0 4-j u (1) -0 CL 4-J o V) V) V) 0 co u V) 0 V) V) _ N C6 u N > N N (� 4-J — a-+ S2 X cn N J CL cu I— J � Q O L- (D N V) O J � Ul _0 c- �--- 4— � � v O O N � -0 N GiC1 `n o� � m © O 0 0 : c— O Co I m O 4-J N p O M -3 O ct tarp Z0 ' o c6 N Z O c CU T3 4-J cn ro C- O 4-J bz o > > -0 -0 0 cr U (1) &- 4-J o x C u c Q C) 0 (1) 4-J 0 C: 0 a� o o > (1) C- a� N a� CiD c� a a ' o U V7 m W + ro> <O W U U-) _5 0 ......... .............. ._.......... ._a_.._..._ ..__.. _....._......... LO N r4 C) 41 m iB e cs M m k6 cv�� .... ................................... 14 m LM cn (31 CD r.4 00 rl -zr 00 m cll� r4 Ln L8 I-q Ln m AA. rl ....... .......... .... .......... CRI 01 ex) to 'In OJ OJ............ 0 2) 9 cc OJ > 0 a) N CL CL CL ci Ln 0 -0 ca O CL 0 > > cu m LL. 0 0 >m CL 0 CL Ln C) "ra LM �4 N 03 r CL 0 �R 0 CL 0 o- 47 m Ln CO r m 11 - Q m CL m CL cc CL CL m w C 0) tw OA u 0 -o c 0 c to W C) tw 04 :Ll :Ll C I E E E E m cc: ..Ps. E d 0, 0 0 day 0 ................... -.. .. .. ., -1--i -!6j .90 —0-6.1 i (U 4-J f13 � = U a-+ i- v cu q� O O O O Ln O O O O N 4, 4-J LO o Ln o c6 q m °o m o C rn o rn r- �— 4-J () N O (L N m (In aA 7C O v c� Q ( ;� 0 o 4-' O a �� © aj a-J O �H-- U L 0= V) c� 4-1 .� 1 O E"' N �1.+ � V) = ca — OC � p � �3) w C7 O C = a-+ .N cn a=+ pZf N p V (.1 Q O N N N (11 ) "TZ O U 4- a� � v a c� z o o +-' (3) m .O Nj d i- d1 tU rl-4 (A LU r) > u c) (a) 0 -0 V) i ct rA Cd V) le, -It 7t 0JR-d lsonjuj rn. .............. rx� Ct C., (11 Cl all 00 r- Q? V L. to 4-J 4-j E On 4-1 4-J L 0 u 0 7 7Z Z a FM=4 U cr C- 4--J E 0 > 0 0 0) �;� * -J 4 L- Ln C 0-0 O C- 0 E 4- u 0) u U 0 F 4-J 4-) c- V) 0 0 (1) (3) 1-- 0- C- t- 0 Un E o E c: C- > :3 .4-J o (1) o > Ln (a) < M r♦ N M rl N M p (B rl N M @ rl N M rl N M f6 (O (6 (0 p d d d ¢ `t m m m m m m m m m ��i c`�) `c a° v o2S + + ¢ Q m m m m m m m m m u v U u v d �n dd m m m m m m u u c >> V) C v zs z) E U E, L- >CL 5 L c m = O -a t ''' c � v v c -a o m N s- N (7 C 7 4-J UD C � to f6 d-+ 4-+ taA �+ QJ p a-+ U v Z3 4-J i O v Zf C v 4-J ~' V i tn CL •y 3: •— it r �+- ■ '=' 'cry > p V) O - O � -O W p C �; to v C a) -0 O 0 N 4- t) tom/) fB ±� V) P- �jQ N V) _ qA v V � 5 i- f' -0 > 4-J _ . v O QJ V �+- =� v to O v s- CU v 4-1 �r �e1ii'rr/i/,i %ri/ir o/t r CL oi/ /i ai r i it co 4-1 0 Gi Cd r'l /�/'./i///�'����/i//✓ /iii ��r' 00 4% ,1 1 ,flit o a 0 a a o oc� o a d M r, (sjuiod siseq)(IWW VVV of peazds z N 0 0 W q N 0 0 N 4* W m 0C 0 W w m N Ln 0 0 N (7) rs N m rs q rq 0) Z o ri 0 R* LA m W 0 0 0 w a) w m H 0 0 w H ri W H 0 q T% M*l 0% W% N% N% 0 M M 0 N M Z 0) N 0 0 H 0) N MW N 1 00 w 00 H rq 00 (D W R* m 00 0) 00 LA XT 0 q* H 0 0) 0) N r-i N W N N :) 0) rl 0) (44 N % % % % m ri% m rq m H rl% m %6 rq*l rq% in N iA ri N N A6 IA tLo .41 4J 4J t C > 0 0 0 E m 0 E u 4J C (A m 0 4) u 41 0 (A 0 41 Z u E r 0 u Ln u (A 0 r- 0 0 W U M E ri L. U r t W 0 0 0 x +J E c m w c a C m 00 4J r.- -.0— o .0 6 o U. 4 J 5; c IV o u 4o w vi 0" CU 4-0 4J 0 4- 4-J 0: .6 0, 0 in w u 0 a a) 4) 4j 4,J tA Z IA 4.o 6 ., < +j 4J tn N pwmmmk U 0 14 w c c 0 th 4J 6 6 U 0 0 0 0 0 C CL 0. (A u u u u m 0 L 0. Lr T oj a a. -a 0 m o, a w v oc 4 ct ti v •� L'I s H 43 n n a n c a O O 00 C) 00 M t0 Pr t4 h Ln I M o m 0) F•" C "It, H eNy^ "y try NN N N N C t D r� r M N 00 011 h v It N s2 n to m 00 m tti E + eri P% r-i v► c° O +n ry mm cn H J o Co � � er rn rr Ln zs o, o, Oi ck c cu +_• r`O. o�'o cmi H o H-� p •a •a 'a � v° af°c o` en em o' Lri m o a a L n t C° = toa Ln Ln o w W to to r LrL �~-L G7 Ul - 4 . N M `^ y � LS VA FMW4 t oc q a o, + Qj a5 QU a � Up cn Ln cz 20 I.- s O tJ t p M N LLn to N terry en M E 1.10 L j•L CG ih N M L-i V d tJ � N 1Z. a 0J i ° a a a a 5 a t3 Q w t°n cc `ts v o, LM N cc 0 w H a� ( > c aC �, CL � �f ff'��f��1 ref I ac m co to m o m I J uA C GJ 1 � _ M 1 - �i 'Q GO / G�1 — ONO 00 + V} cf� CL it Ln u 4A M U I I I U i 1 Q' 1 .L I a I m N I m N - M O Ln 00 L I ONO t N NO N p tlf 1 i tJ = m M Io 'o tlC ct F a...... �Q ._ C ......_... ..O 4 0..... _... ........... °a °a °a dQ' M M N N �Ln-1 I to f6 -N C6 �0 (tea �O � SZ 4-j 0 N C a-+ O .N T,3 N i cu U c6 Co O m (1) bz � 4 CU 0 d C� a-+ � -0 v O N SZ - " co M 4-J O tij V) � U a-o+4-J ro O '� C) O U O 4-J 0- J Q .all (U a cn cn C- q p O cn U 4-J 0 N tU .� 's- V7 2 t� co 4— V) �n - . - O C U-) P Q E -0 Z i cu U U co 4-J O CL .-, Lr) _ 4-J U U (,,,) f6 O O a u u N 01 H O l01 C7' O c1' tl' b' O'f tl' LO M 00 LM LM O CD O t0 h R!' N h cf 00 N O1 h h N I/i h Ll1 N 00 l0 M 01 N N CF 00 O cn h M H LA tb M N H M a u °°-i Ln N H M Cl' O O d N N tP 04 h ct N h O'1 LA Lm O a M Lf1 00 O N N N 00 O 1p Cl' H h N 01 I!7 N 00 tf1 M 00 N N C!' 00 O 0) C1' M 00 N 00 O N H M i/1• i/1 ih 1A i/1 V'F i/? iA </? 'IMh i/? L! a L co u i ,-I N N tt1 h N h O h Lh O LM h h Q9' N N C!' Ill Ln O a t0 M O 01 H O d 00 00 t0 H 00 N O N Li N 00 N M M h O N M 00 O 00 N M Ct O 00 00 N H M iA i/1 i/1 ih t/1• 1-116 iA iA N 00 H Qf O O Q1 00 07 U9 O1 C1' cY 00 N Ln to 00 h o/ 00 00 oD h l0 Ln 00 cc h O N H M a bz L � f0 v L aM-I O N M l0 01 01 H O M h O O LA u7 Lo h N Ln N O a Lp O l0 CI 01 O h h tfi tll td H LO trf N v'f N o0 O M M 01 H H h O 00 4n N 01 LA h+ M N H M i/? i/? iA V? i/T iJ1• i,/)• i/? i/T i/)• 4^1 iA 1!') N h O Ill V'1 �!' t0 O 1l1 CI' Ol O H H LA to O � a N O) H tr1 0o M Lo h ct e7 ct o0 H ct to trt N o0 H 01 N N 00 e-I 4 h O 00 '0' N LD CY 1`� H N H M d °C tNif. vMf vH>• vN's � t/>• tN/'>• tNn. t f v001 +H11 n N a a`r O a c o > ° W '2" ♦a+ 4 - Fm Y 101 M F M .m h to v /_ cr i:. I cr- �r I = :�- I = �r I = 2:1 a S �'' .0 Y .0 Y u .� •'' y S Y L Y E ° .1-7 o E � o �° E E O 9 E 2 u i- °c 2 C° 0=' fo 0 0 u° Irl m u u L N W \ W 01 p M O1 p M u1 W i O W W H 00 01 V1 O N M M h a W C W Q t p H C H p W H p W H N co H M O M M h O p GD N Ot O 01 R O O H H O O O M p O m p 0o N p 00 01 h h M H N u1 CO y N VI M M 00 00 h H W h H 00 p M 00 M H V1 p V1 h h M H V1 H H ih UT u1 u1 H H H H p p N N VF 0 0 0 N N V! V! VF VF V! V! th V! VT VF V! t? m Z u L H N N 4n V1 h �� h 01 ai V1 h N 0 h N IM W H N m H 00 H m M 00 H h W M y l0 C 00 c co V1 C V1 H M 111 H M Vf H W W W M M h d O W h N W Ot h h O 4 00 00 h of O h M 0 V1 p M 00 N w m d H V1 w M co H cc p p M M h h W H 00 0 H 07 M M h M H 0 p V1 h h M H U1 mi H H V4 N u} V} H H H H p p N N VI % 0 0 N N aM L 16 t u 0 a N in 'ti V1 h ��.,, h U1 '*y in h H ao h H 00 p h H p N h h p H p h H 4 d O1 01 h c h N C N O C O GD H M 00 H 01 00 p M O M M V W H W V1 N h M 01 d' p O O h h M MI W M M N O V U1 0 00 h 111 M O1 O1 Vf V1 00 00 t0 M M h h W H h W H h M M W N H p p p W h N H p H H 0 VF 0 0 H H H H p p N N 0 0 0 0 N N V1 V! V? iR ih VF V} to V1 V? IA V1 aM L v 6 14 N N. O1 C 01 lh0 C w Li C in 6Wp W tHP1 W 411 M h N OW1 VN1 tO11 Vi epi N dW' h N Opt N a A H H 0 Oi Vi N O N M O N M N M 4D p h N v M w oa M M p h N w p p N N h h W H h W H h N M V1 N H p p p W h N H p H H VT V1 VF VT H H H H p p N N U! 1A V4 V! N N 1h V! VF iA V! V! VF il! V1 V1 iA N to R u N' M N M M 01 01 10 W H O H H O H H M p N H W O O O p Vf M H 01 O a H C H O C d O c 0 V W H u W H H H N H W h h u1 N 01 M N W Vf p m 01 01 mi I Cni P, N O h N 0 p M h O h h M M h W V1 N 01 h h M M N N h h V1 H I". V1 H h H M p N H M p p W h H H M H H H H p p N N VT 0 N V1 N N V! VF OF % 14 0 0 0 in 0 M ti M Of +:�, 01 W ti W H O H H O H H M p Vf H W O O O p V1 m H 01 O W h h V1 N 01 M N W V1 p O1 Of Of O1 p ct h N O h N 0 p M h O h h M M h W Vf N 01 P� h N 0' N � VNI VN! ih/1 ihlV eNi H N � H � p M pV N H N +pA N VWi Vhf N H N VT //! V1 Vf VF i/F V1 W VF VF V1 i/F a m 0 VI 0 > OG a i I i = 0 6 H 0 0 0 y N VI V1 L L L > C sc w- w 4� .0 E m x co X X ' 0 X 0 X N X X X N X (0 X c a a c a m c a x �S a s v a a a a a m a x a m f6 a ro a A 'L° o m o f ut a I- a o I- a t c o E- ro F w t- c@ r � x i- w > fr, > grr > :t z " � > 0z > mat > gz > io1% f « I z +' C « _ j w c m a c -5 wx O a c O a c c= o Y 0 ~ M O U U a 2O 2 u _ 2 u : 2 a 2 U a d X G c c U l—o H N M H V1 N m A�1 ai ca E 0 4-0 Ln 4 0) a) V) c L) -0 C _0 0 b.0 0 FM FWM4 4-+ 4- 4-J 0 C)4� CL c E > " - 0 ro 4Z ca 0 Ln E 4-j u C: - L- o > 0 4,� (A W 0 u > a) u L u C 41 C _ -� 4� 4- -0 in a) 0 0 U " Q) > L- c 4- 0 L- 0 cr w a) tw w UO CL 4- W U = 0 m u 0 0 0 0 0 'E 4- 4• e, W c c CL 4-j 7a 0 = M 4� M '- x L- Q)cn d 4� C: 'n 0) 4�V) 0) 0 • s.- 0 zs (1) m u cu Fj 0 cu m a) _=3 >0 .— U 4� u ::3 4- t)D U 0 L- c Ln -0 0 0 o ca o o > C) CL 4- C m E C) 0, Q 0 U. 0 :L'>- a > -CI u o a) 2 4 E 0 (n V) L 0) w - (U l C) b) =D 4-J (n m !- Ln 0 0 g c S- LO M E > u 4-1 o 0) E E W bo x mm mm mm C M (U f, 0 r > to Fes— 0 ao 0 ro 4� V) 4-' 4-J (10 (U co -0 4- 4� V) 4Z) (A a) c .7 > W 0 E um (A a rmmw4 o I 0 m " vi -0 0 G a) w > 4� _C V) 4-1 c 0 _0 E V) 0 4� 0 E4� V1 4-J E an � 0 4� 0 0 E m -C }; OL 0 0 0 0 0 E CA =3 -0 V) a E 0 4� Q) V) M 4� C 0 ro F 'o Ul V) ui o bD 0 o 4� 0 m C u 04 4� L_ 4_ L- c c r 14 04- c 0 0 0 -C -0 E0 S bb- C: c 4- C) C m -0 04 Q) 4-� C: C: o = ` E c 4� 4� c _0 W CD C) 0 4-J m V) c c m w --'e bD-F 4-,' 0 .'c_^ 4� _0 0 IM 4� _0 0 :E rlj u -j 0 V) m > 4� 4� c 4--J 4-j 76 ct o o U W 0) c c CL CO C: +) , (U Ln 4� > C cu C: V, -J w a) v) -E _0 a) 0 E -0 u C: w =) V) V) w C) 4- WO 401 E E 405 -Cc fu 4� 4-J 4-' 0 0 -0 >. w >- C) Q) C: >- C: c -E a) CA m W Ln 0 0 (u C: (A 3: .p Z,; V) C) OD 0 > -0 L- E a) f C (A 0 0 (U 4- fu V) CL r 4� u 0 0 u .4- C) 0 (u a) 4� 4 ■ FMMM4 4� c co C) .�p*� >1 4� a) 4J V) m 0 4� E CL (A 16 U.J WiNINNO Ul) 4- C) Q) C: 4� 0 E C ■ 0 0_a = 4� tDtb 0 4- U C) 0 to 0 M U 4-1 L >.u Q) 4� 0 C: 4� v 4-j < IN 0 0 L- z 4 Fo m -0 m = L- m -0 E >4� 4� •> LA a) =3 E 0- c) 0 of 4- (U ro c C a) o M 'U a- -0 E =3 bb u Ul) 4-J 0 c bb 0 a 0 V) C: 0 C: 0 C- tu a-+ E 0 4-J 0 4-J 4-j CU 0 E V) C: 4- 0 4- M o N N tL 4-J Ln > C: 4-J (U E 04- 4-J 0 &_- a) 4- Ln 0 -0 0 E 4- Q) 0 E 0 4-1 4-J 0 t -j 0 4-J W Ln E bn C: a) > 4-J (U V) I_- M a) C a) V) = 4- -o 4-j 4.� o 0 (U Ln .— V) 4-J 0 4-J V) Ln 0 Ln c W r-4 .0 C: V) E 4-J ul 4-J o '0 L E - e w =3 4.J L- Ln L- E M 4-1 o `) -a E 4-J -1-J o 4-�u &- a) CD 0 4-J _0 0 c) .2 =3 04- 4-J 4- 4-J E L- Q) 0 E 0 4- E 4-J 0 4-J V) E 0 -1-j C — u 0 E V) M -0 Ln +-j E V) 4-J o E Ln u v,) > w 4-J N U 4 a :3 = C: 0 V) c: 4-J 4- N U 0 M .0 M C C 0 J- 0 M 0 4-J C) 0 bn 4-J c 4--1 Sm" 40- 4-1 > 0 0 c .— x C: c C: U .- U- u =3 < C11 Z3 4-J CiA 4-J a) =3 4-J Ln E 0 4-J O O -0 x c C: QL u _0 0 E w c-a) 0 0 C: o m C: +-j u u O 04- >- U ul m c- c- Ln u m C: 0 .0 4-J o E 4-J Ul (3) > 4-J u >) Lco C 0 (3)(14-J n > -C _0 -0 0 4-J U ct4- U C- C- (1) (1) Q) o o 4-J Zr- 0 U a) cr 0 C- Cl a) -1-i V) Ln 4-J a) V) Eb4-; .4-J 4-J 0 C) 0 0 L- Q) a) C) L- -0 0 E (1) 4-J cn Q)N 4-J 4-J 0 0 C- . 4-J Q) Ln Y Q) C 4-J C_ 0 4-J CO Ln 0 ca o 0 u V) C- 4-J U bZ Q) _0 4--J =3 o C- D- X m C- 0 m < U 4-5 0 0 LQ-) E u si 0 =0 ct P-4 aL4 (A _0 bz c 0 rm-4 co u4-J CU 0' > CL cc_ (1) 4-J Co w FWWM4 b.0 Co V) 0 > 0) 0 0 V) 0 4- U 4-J V) C) 0 0 u roW 4-J 0 (2) -a (1)ro > c U ct 4-J .4-J -0 4-1 �p 0 > V) Fj V) Ln U C: C: m D L- m C- 0 u (1) C: W M 0 3: L- CL 4- ro 0 0 ro co U c: 4oj 4-J .— +,CL U (1) 0 (3) (3) V) m buo (1) a) (3) -0 0 c: S2 ZT O W re 4&Z Q) C: E L- c 0 o u F- 4-J 0) 4— C: W 0 -0 4-V) V) 3: C- 0 Lf) 0 QJ 0 cu (D —j (D V) < o- 0 4-J (D 4-J V) w kD 0 Rt 0 0 0 d' r- 0 N 4-J U� U� r� N ryi 6 ryi O Lf) Lr) to r- d* 0 w Q,j �t 't C* V-i 0 w R* 4.-J C� I-q I-R 114 ry� 6 (Yi 06 C 0 0 0 �o N t.0 0 w 0) 00 r- m (14 110 m r-4 Ln E r-4 t4 m w w 0 0 0 0 Ln 0 r-i 0 M N n C— 0 r, r" r-i N d* w d Itt Itt w LO 0 0 It It a a 6 IZT' M, Lrf 06 M 0 m w lD r" r H- N rr� V-4 w H N C� 0 E co 00 r- 06 co cr 4-J a) > Ln Ln -1 0 I? 0�•V 09 q q a� Z 0 r- r\ Ln R* 0 a) cn r- a) It w cn Co u r-I 00 l r--i (::� 00 CO 000 6 E co 00 00 C: -0 0 ct L- u o r- 4-J V) Q- CL 0 4-J Co V) 0 0 (3) N (3) 70Z rMN4 L- 4-J U Q) 0 F=04 C— C— CL a) U -0 u (v (1) 0 0) u• I E a) 0 r) 4� cc: 0 V Ln 0 0 E c a) U 4� V) r-q 4--J .4--J 0 E co m 0 .6 a C) V) E V 4a C 4-J o r ro (A CL 0- rL u u E _0 _0 u 0 0 *5; -0 -0 u 0 V) 0 C ct 0 LL U- a- CLO4 6e Or, Ora O� O� �r�r �c�rcewrcw�r �cer��r�dr�waw�rrr�err `rc;' O� ���r�i�iar�rr�r�rr�r�rmrra�r�rrruw�r�rur�rr�:rd�rrmra�war��rti�rw�r�� 15�, OCs �fRfrrnf��a��r�ru�l Irrt�R�Rlrtrrfrrt�rar�rffrf�f��nl rtkk�rN�RrRfRfrtP'l�rll�RrRf�ll�r�����r�RrTfi f� ,,.,,rr, ��rFar�rr�rrtmiraRrrrr����r�hrarr�r�RrarRO�rrirrr�rRrr�a�r��Rrr�r��r�r�r�rcr�,�r�ru�tir'u': C�fi°� � 0J O co C`J Q) «r�rr�r�mamrrr�r�r�rrr� O� > Mmmmmmmmmm /� ,��rmkiiwuriiaR rR r�JR«rartrr�Rda��rrtrt�ar�r�r�rr�rr�rtrRmrRnri�rtn�rwc�w�r���; � fC m�roN�r�izl�Rrarrm���r�r�rRar�rn^r����ci!arFZrer�rrwr��xRrRrr��aa��e'' ��°� � .�J iarwwau�rea; raarr�r�rr�raarirtrrrrrt�Rr�rHn�rr�r�r�rr�rn�rrr��r�rtrRdG�'. �"�° V1 uG�!GlFrk�l�@ GUf�Of�fWQ�(a�flf�l(f ud�rtGGnfiG7rtf�rt llmfrtORlAP�rtlrtrRkR���l�rt(l�k!' V� � oc' icYrtrNfRf�rlWf(rtf�u„frdl�Grd6�Rk�rrt�l�G(lGl S� T (R(l JN'WICfrtPmiffrtff�flrtRfRfRf�frtil flRff�R�NdRRf(7 O� v � v MMEMMMEMMMUMMEMOMEM ee C co T Gds%d!!a�n(rcrtrfRrGaf��r�fKfWf��Gif' ( Q N � E 4— 2°� Fes- .a'' r r CL _ � � ("� ��wrr�rRU�r��tr�r�r�rmrrr�r��r�rru�r�r�rr�o�aarkmur�rirr�rmrrRm�nQi�t O� O 4—J {.�� V Oe B IMP CL 0 °e kaco�e�r�rr O 4—) > (� *ter Oe C`J —J cof N O Oa0 tQ0 5t N 4-J G cv 0 0 — fB 4-J C 4-J 4-J V) > 4-J m C: 4-J U 4-J V) -1 E E V) L- u 0 4-J 0 O u 0 4-J 4— 4—J W b.0 V) > c 0 —o 4—J u 4—J 4—J 0 Q 4—J =5 (3) Ln E 0 V) 0 0 0:3 C- 0 0 76 4-J V) > 4—J 4 4—J (3) V) u 4—J 0 4-j V) 4—J C- 4-+ 0) U E E C— C) U S2 4-J 4—J L U 4-J 0 Q) 1) C C 4-j CU > V) =3 •C '70 Ln co Ln 4-j > C: N 0 N L— 4-J < 0 tj 1 0 CaA `w C- E C- < CY) 0 u u 0 4-J r C u L x u 4- C- 0 w L- >- C- E 0 u _0 A-j bn E 4-j N N E Ln r -0 L- w Q) _0 �p c- c E +-j +-j c- 0 - cz o M CD 0 CD C- -0 w 0 C 0 4-J =) 4-J ' o 4-J =3 4- C- Z J u 0 QL E o :3 a) = 0 00 u 4-J > Lr) Co M W W W QL (3) u Ln L- a) 0 E 0 W 4--J 4-J E Ln 00 -0 C- 4-J Ln a) c: 4-J 4.-j E >. c Lh 0 o Q) >� -I-j b 4-J 4-1 C) 4-j 4-J U CO u -1 (3) 0 (3) llzt L- V) 4-J •> Ln Fo > 0 C- 4-J 4-J E 0 a) U r,4 s-- 0 .0 C- c- E 4-J Ln Ln +-j 0 4-J J- 4 o 0 0 -• w cn C 4-J C- 4-J CU 4-J L- 0 -0 0 0 0 tw :L u o c E tn +-J Ln CD 0) E -= m V) > =3 c Ln a) r "1 0 Ln 0 4-J Cr o co c a) C) U- u u U- r 04 'D It Sao 0 m It cr� 't 0' 0 0 A � Ct 11) N 0 m 00 00 0 (n �q C) I- V) d M O an d 00 V) m 0 Co (r� C4 00 V) 00 00 ouu V) (11 M 00 0V if) V) 00 N If) N 00 ko (14 - q 00 m 0 z m C) �O z N m It 0 1- It (A 00 00 m z m m 00 ICA C�lf r C) � N N z V) N 11 11) It 00 N m V) m cY 00 0 M m 00 N N V) t, if) m - Oo 00 C. r 6g A � � .� o � ro M N M O 00 O O d kA 00 t- m V) 7 M y z fl r- NNE 0 00 O d M rt z 00 V q Q 4 1� ll� In �4; 0 V) N tl- to N (1) 1 C� (,I V) 'i co L z to M m 00 Z V) - 00 1- O M Z Z X C 0, It C lc - 0� 0 t r� > C) rl� d• 06 0 0 0 'a A EA rA A A A A 6n 69 A u z 00 to Z C:) V) 00 m C) 0 C C, m 0 C) m �O O\ If) M 0 m r- O m U a 0 4 z '0 t C� x to z O� C� cow C� � 0 kr) N (11 m \0 0\ 10 1 M N M kf) m —c 0 0 00 M D Z N — 00 M M 0 7 0. .0 M 00 ("1 0 0 -5 ,6. g) Ol tl } 5 0 4 Q r 0 -0 M N 0 0 V) C) V) kr) C\ 0 0� d V) 00 — m 00 z ;; 0 C) 00 0 C) 00 C7) m �O 0 - m 00 6 q u 0 ("� ll� C� C� �t 10 q 00 I m if) E u 0 " . mud 1- 0 in N I. 0 (71 0 t- t- N m tK (,f 4 t..: 2 r 0 0 - r 0 m Z — oo '0 kf) t- C\ t~ m tf) N 0 a 0 0 yj u 00 1 1 1 z r t - 0 an 00 Ln :; E N 0 0 0 4 ct C6 V� V) A -Z0 r- - U u 00 C, C 0 C, I m 0 0 V) 11) C) = E ol . 2 8 x 2 — 0 0 N ki) N 00 0 0 It It 0� C) 0 > 0 � n C� q \� Iq li C� C� It C, m m \C) z u 0 : M - V) M N V) I- li 06 M M 'i h 'i - j r q C, M 9 Z oo fn V) in 00 00 V) lc� I � C^ (- [- - --1 0 M in m ' — M' u Zd 0 -, N a �f3 b9 6g f3 bg 6g bg FA A Gn FA 5o} i v r I b '0 0 u 0 C� 0 C) 4 LI) 0 0 14 _u E 0 0 r "0 r Q N > 1P, Q > 0 v) Q 1 r 0 U ti r 0 0 U > u D. r 0� o > r 1) z a FUME"% Q — Pbu�-O 0 r. I c 5 r 0 0 0 Z 0 0 "0 0 a 0 4 E 2 u) 7 4 v) > rA 0 V) (A %- , 3 u u 1; (A CA 0 0 �o 0 z 0 .0 0 0 C)0 0 U u 44 0 r. -6 'a Q- 0 u-u 0 C 0 zw N U m U 40 2 Z V) Qr) 0 N CL c 0 V) co 0 C- u N E C: a) C) u 4-J 0 0 4—J o 76 0 < 0 0 taA EF 4-J 0 W C: -1-j UD 0 Ln a) Q) CL 0 Q) E cr- 0 4-J CL r) (3) _0 m 4-J u 4-1 0 cr- 0 0 m 0 0 4-J (3) L4r) bn 0 b.0 _0 CL 4-J on V) 0 ap Q) 4-J CL 4-J a PM04 ma) 4-J (3) N =3 > > 4-J (2) 4-J V) 75 4-J 4-J V) U V) 0) 0 (1) s 4= 0 0 0 *U- 0- iz ry, LL D W co CL co V) Tt 0 r-4 00 d'ct CN N C%4 rr) Co N C: C: C: C: C: C: (1) 4-J 4-J L- CID 4- > N C6 0 U 0) u U 4-J Co 0 taA 4-J 0 4-j 4 a)-J o 0 — Ln u U- w-0 u Ln E 0 4-J 0 3 Z3 _0 >-u 4L/-J c L- 4-J co OG .o.-I V) .> .2 C- =3 0 0 O — Q) 4-J (1) V) +-) (D u >- 4-J :3 C ul u c C- Ln (1) C13 4-J (2) c- C: -0 4-J N 4-J 0 C: M 0 0 �t- co (1) -a 4-J L- 4-J X C- 0 > -a u 0 ro M L- E C— 4- 4-) CD > C—CD 0 C— m M Z� C— 0 (1) 0 Ln .— N 4-J C: Ln 4-J C- 0 L- E u 4a)-J c 0 -1 C) 4- 0) V)L- 4-- E C: J _0 L- 0 CaA (3) X 0 4- Ln - c- E 4-j c co 0 L- c -0 ► .4- Z3 zi Ln � Ln 0 E 0 0 E 0 0 4-j LA :E V) 0 4-J aA 4-J -0 c 4-j C- u " 0 0 C M X 0 0 U- CL Cir- < UJ co CO 0 "OFF'ORT NGELES -= WASH I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: NATHAN A.WEST,DIRECTOR COMMUNITY&ECONOMIC DEVELOPMENT SUBJECT: MUNICIPAL CODE AMENDMENT-MCA 14-01 MIXED COMMERCIAL OVERLAY Summary: A new zoning overlay is being proposed that is intended to allow flexibility in the development/redevelopment of large commercial or public properties. The Mixed Commercial Overlay (MCO)is intended to provide a higher standard of development for large commercial or public properties than typical lot by lot development. Recommendation: Following discussion, staff recommends that the City Council conduct a first reading of the attached ordinance and continue deliberation of this matter to the June 3, 2014 regular meeting. Background: In order to continue to provide flexibility and to encourage innovative, thoughtful development of large commercial or public property ownerships within the City of Port Angeles, staff and the Planning Commission have been working to provide a new overlay chapter of the City's Zoning regulations (Title 17 of the Port Angeles Municipal Code). The proposed overlay will allow large commercial or public properties to be combined and developed with thought given to the creation of public open space within the development that results in a campus development that serves many purposes. Properties that are eligible to apply the Mixed Commercial Overlay will likely be larger commercial properties that can be combined to result in the minimum lot area(3.44 acres) or larger publicly owned properties. The MCO process provides opportunities to increase height above the maximum for the underlying zone, and cluster buildings in a manner that provides greater flexibility than is currently available in standardized lot by lot development. The MCO will result in a higher standard of development than typical lot by lot development that often results in a very standardized appearance. Not only will the streetscape be more pleasing, but an MCO development should provide users with opportunities to utilize the site more fully thereby being a benefit to the public. H - 97 City Council Memo MCO May 20,2014 Page 2 An element that is included in the MCO that is not found in other overlay developments within the zoning ordinance is the provision of public art. The State of Washington recently passed legislation that requires projects that receive state funding to include a percentage (1/2 of 1%) of that funding to be in public art. The Planning Commission agreed that since the intent of the MCO is to provide a project of higher standard than typical development,public art should be a component of such development. Although it is possible that an MCO will be developed by a private developer, it is more likely that the MCO will be utilized by public entities in redevelopment or development opportunities. Public art was a matter of detailed discussion by the Planning Commission. It was determined that to achieve a project of higher quality than standard development, a public art element should be required; however, this is more a policy statement than a measured standard. Public art can be provided in the form of architectural features, fountains, or other visual forms or sculptures. The City's zoning regulations currently provide this type of flexibility for residential and industrial development in the Planned Residential Development(Section 17.19 of the Port Angeles Municipal Code PANIC), Infill Overlay (Section 17.45 ), Planned Low Impact Development (Section 17.44 ),Planned Industrial Overlay (Section 17.31). The proposed MCO takes that flexibility one step further and provides the same type of opportunities for commercial and public properties. Staffs report to the Planning Commission is attached to this memorandum as well as an excerpt of the Planning Commission's draft minutes from the April 23 and May 14 meetings. The April 23, 2014 Planning Commission was a public hearing in consideration of this matter with that discussion continued to May 14, 2014, when the Planning Commission unanimously recommended that the overlay be approved. Attachments: Ordinance Staff Report Minutes Excerpt H - 98 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, revising Title 17 of the Port Angeles Municipal Code relating to Zoning by adding a new Chapter 17.37 Mixed Commercial Overlay, MCO. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: WHEREAS, Mixed commercial areas are important assets to the City and the region. Planned development that exceeds certain zoning standards of the underlying zone can provide desired flexibility and be compatible with surrounding uses of nearby development. Unique zoning rules are crafted for each such mixed commercial area through the adoption of a site development plan or Mixed Commercial Overlay (MCO) master plan that 1) identifies a boundary within which the revised rules apply; and 2) identifies the specific rules that will apply to development within the boundary. The objectives of the plan are to balance the needs of major mixed commercial development with the need to preserve adjacent neighborhoods. Section 1. Ordinance as amended, and Title 17 of the Port Angeles Municipal Code are hereby amended by adding a new Chapter 17.37 to Title 17 as follows: CHAPTER 17.37 MCO —MIXED COMMERCIAL OVERLAY 17.37.010 Purpose. 17.37.011 Definitions. 17.37.020 Applicability. 17.37.030 Permitted uses. 17.37.031 Conditional uses. 17.37.040 Permitted modifications of land use regulations. 17.37.050 Standards. 17.37.060 Density. 17.37.070 Procedure for approval. 17.37.080 Pre-application review. -1- H - 99 17.37.090 Application procedure. 17.37.100 Routing and staff recommendations. 17.37.110 Planning Commission Public hearing—Scheduling and notice. 17.37.120 Planning Commission recommendation Preliminary development plans. 17.37.130 City Council action—Preliminary development plans. 17.37.140 Final approval of a Mixed Commercial Overlay Zone (MCO). 17.37.160 City Council final action. 17.37.170 Building permits. 17.37.180 Modifications after final approval. 17.37.010 Purpose. The purpose of the Mixed Commercial overlay zone is to allow for a concentration of uses that, through a campus setting, offer a wider range of services and result in a higher quality development. The overlay zone is intended to provide alternative zoning regulations that permit and encourage design flexibility through the implementation of smart growth practices to promote redevelopment, infill, and functional innovation in mixed commercial developments that involve multiple associated structures and larger areas of land than lot by lot development. Such development needs to be both transit and pedestrian oriented and easily enhance and blend into the character of the surrounding neighborhood. It is intended that a Mixed Commercial Overlay (MCO) will result in a higher quality development than traditional lot-by-lot development. Such projects will use urban design components relative to walkability, access to transit, public amenities, and a variety of services and building types with attractive cohesive landscaping in a manner consonant with the public health, safety, and welfare. Specific development components are required to be through a pre approved site design. MCOs smart growth practices provide for infill development that complements surrounding neighborhoods without following a standard system of public streets and lot design and provides opportunities for commercial neighborhood developments not usually permitted in standard commercial zones. An MCO may combine a number of land use decisions such as conditional use permits, rezones, or subdivision into a single project review process to encourage a timely and coordinated public review process. The consolidation of permit review does not exempt an applicant(s) from meeting the regulations and submitting the fees and applications required for the underlying permit process(es). Legislative actions such as street vacations will require a separate process. 17.37.011 Definitions. A. Mixed Commercial Overlay (MCO): A site specific development plan that has been approved by the City Council under the provisions of Chapter 17.37 of the Port Angeles Municipal Code. B. Floor Area Ratio (FAR): The gross floor area of all buildings or structures on a lot divided by the total lot area. C. Green Roof A roof that is partially or completely covered with vegetation and a growing medium planted over a waterproofing membrane. A green roof is primarily a -2- H - 100 stormwater management element but may also improve a site's aesthetic qualities. C. Impervious Area: All hard surface areas that impede infiltration of rainfall into the underlying soil profile. These surfaces include but are not limited to compacted soil, asphalt concrete pavement, cement concrete pavement, roofs, and gravel paved areas. Green roofs and minimal excavation foundations subject to conformance with applicable Department of Ecology Best Management Practices (BMPs), are not included in the total impervious area calculation. 17.37.020 Applicability. MCOs may be established, subject to final approval of a proposed master plan in commercial or the Public Buildings and Parks zones. A MCO shall contain a minimum of 3.4 acres (a standard city block). The site shall be composed of contiguous lots or parcels. Development must be consistent with the City's Comprehensive Plan and Land Use Map. 17.37.035 Permitted uses —Those uses permitted in the underlying zoning district. 17.37.040 Permitted modifications of land use regulations. The approval of an MCO may include modifications to the requirements and standards of the underlying land use regulations of the zone in which the project is located (see PANIC 17.94.010 for parcels with more than one zone) subject to the limitations of this chapter; however no approval shall include a modification, variance, or waiver of the requirements of the Shoreline Master Program except as provided in Chapter 173-14 WAC. Modifications to the requirements of Title 15 PANIC (Environmentally Sensitive Areas Protection) must meet the standards of that chapter. A. On-site parking requirements shall be consistent with Title 14 of the Port Angeles Municipal Code. Parking requirements shall be evaluated for the entire project rather than for individual uses or structures. Shared parking for a variety of campus land users will be considered in review of this requirement. B. A height bonus (height allowed over that permitted by the underlying zone) shall be limited to a maximum of 45 feet, or one additional story, whichever is the least under the following circumstances: 1. When below grade parking is created, the combined floor area of any floor above 35 feet is limited to 125 square feet times the number of underground parking spaces provided. 2. When open space elements are increased above the minimum required, a ratio of 1 square foot of bonus height floor area for each square foot of open space will be allowed. 3 Bonus height floor area may be increased by one square foot for each square foot of green roof created by the project. C. Every structure shall be set back from exterior property lines per the underlying zone, except for structures exceeding 35 feet in height. Exterior setbacks for portions of a structure exceeding 35 feet in height shall be increased by 2 feet for each 1 foot increase of building height over 35 feet. D. A detailed sign plan shall be submitted as part of the project master plan for approval. 1. All signs proposed in the MCO shall comply with the provisions of Chapter 14.36 PANIC, Sign Ordinance. -3- H - 101 2. Sign design shall be coordinated throughout the development. E. Parking areas and facilities, trash and refuse storage areas, ventilating mechanisms and other noise-generation or odor-generating equipment, fixtures, or facilities shall be located so as to minimize noise and odor impacts on the surrounding area. The Director may require measures such as landscaping, sound barriers, fences, mounding or berming, adjustments to parking location or setback standards, design modification, limits on hours of operation or other similar measures to mitigate impacts. F. Required landscaping shall be compatible with neighboring properties. Landscaping shall be required to reduce the potential for erosion or excessive stormwater runoff, to minimize coverage of the site by impervious surfaces, to screen parking, or to reduce noise or the appearance of bulk and scale. Specific requirements of the landscape plan are found in section 090(F) 1. An MCO shall retain a minimum 20% of the development as open space/landscaping. a. The open space counted toward this set-aside shall not include green roofs, right-of-way landscaping including, tree lawns (street tree plantings), parkways, or landscaped traffic islands except where plans vacate these public areas. b. Inherently unbuildable areas such as wetlands, floodplains, or other environmentally sensitive areas and buffers may be included in open space requirements. Where such areas exist, limited density transfer calculations per 15.24.070(G) PANIC may be applied. c. Open space areas may include stormwater detention areas or landscaped swales. 2. "Streetscaping" refers to urban roadway design and conditions as they impact the diverse range of street users and nearby residents. Streetscaping is an important component of the public realm, which helps define a community's aesthetic quality and identity. a. Streetscaping shall include shade trees planted between streets and sidewalks. Trees shall be chosen to maximize mature tree canopy and be planted at a spacing appropriate to the approved tree species. b. Landscape plans shall provide an adequate soil volume to support the mature trees in a sustainable healthy condition. c. Streetscaping shall be designed to provide easy pedestrian access between street parking and the sidewalk. 3. Traffic and parking impacts shall be minimized. Common parking and landscaped areas shall be maintained as an integral part of the site and may not be segregated as a separate parcel or parcels. 4. All MCOs shall be designed such that proposed structures blend into the character of the surrounding neighborhood. a. Loading areas. All loading areas shall be oriented and/or screened so as to be unobtrusive from the adjacent streets or properties. b. Trash enclosures. Trash receptacle areas shall be enclosed by a six-foot- high privacy fence or masonry wall with gates. -4- H - 102 5. All MCOs shall provide for continuous and perpetual maintenance of common open space, common recreation facilities, private roads, utilities, parking areas, and other similar development within the boundaries of the MCO in form and manner acceptable to the City. 6. Platting shall be required for all projects that involve or contemplate the subdivision of land. Lots in a platted MCO may not be sold to separate owners. No further subdivision of land within the MCO will be permitted unless a formal amendment to the MCO is approved. 7. For any underlying land use regulatory process that is consolidated through the MCO overlay process, the criteria and development standards of that underlying land use process shall be met. Any subsequent land use decision made pursuant to an underlying land use regulatory process shall also require an amendment to the MCO. G. To encourage design flexibility, and innovations that result in a higher quality environment than traditional subdivisions, site planning and architectural review that address specific criteria are required of all development in the MCO. Where applicable, the design of MCOs shall accomplish the following to the greatest extent possible: 1. Provide amenities that complement the surrounding environment; 2. Provide a walkable, active, and transit oriented environment that may include bicycle or pedestrian paths, proximity to public transit, children's play areas, and common open space areas; 3. The design of all open space areas and built structures shall be compatible with and complementary to the environment in which they are placed. H. Public art shall be included in all MCO proposals. A minimum value of 1% of the project value, to a maximum value of$50,000 is required of all MCO project proposals. L All MCOs shall comply with the goals and policies of the Port Angeles Comprehensive Plan. 17.37.070 Procedure for approval. The procedure for approval of a MCO shall be composed of four steps: A. Conceptual plan submittal for pre-application review by affected city departments. This step occurs before an application is accepted as complete by the City; 1. Prior to applying for a MCO, a developer shall submit a conceptual plan to the Department of Community and Economic Development (DCED). The conceptual plan shall contain the information required in Section 17.37.090.E and G. 2. The conceptual plan will be reviewed for its general compliance with the intent, standards and provisions of this chapter and other City ordinances. 3. Written comments will be furnished to the developer. B. After conceptual plan review, and prior to accepting a MCO application, the City shall require a neighborhood meeting. 1. The neighborhood meeting shall be organized and sponsored by the project proponent. 2. Neighbors within 300 feet of the proposed location shall be included in notification of the meeting. -5- H - 103 3. The purpose of the meeting is to; a. solicit information regarding design alternatives, b. to minimize any adverse impacts from the MCO, and c. provide an opportunity to inform the general neighborhood of the proposal and ask for comment. C. Submittal to and acceptance of complete plan by the City. A complete plan packet shall contain all required elements deemed necessary by 17.37.090. D. A public hearing on the preliminary development plan and, if applicable, the preliminary plat and other permit actions. This step results in a recommendation by the Planning Commission to the City Council of an action to be taken on the proposal; E. Approval by the City Council at a public meeting of the preliminary development plan and other actions as applicable; and F. Action on the final development plan and plat by the City Council following a public meeting. Final approval may only be granted after all conditions of approval have been met or bonded for by the applicant. No lots may be offered for sale prior to preliminary plat approval by the City Council. 17.37.090 Required Application Materials. The MCO shall be established only in conjunction with a Master Plan which generally specifies the parameters for development of the property. The Master Plan shall contain the following: A. The name, location, and legal description of the proposed development, together with the names, addresses and telephone numbers of the recorded owners of the land. The applicant, any authorized representative of the applicant, and if applicable, the names, addresses and telephone numbers of any land surveyor, architect,planner, designer, or engineer responsible for preparation of the plan. B. A narrative explaining the proposed use(s) of the land and buildings, including, but not limited to, documentation of smart growth practices, infill, utilization of existing infrastructure, walkability, and orientation to transit; information on any special features, conditions of which cannot be adequately shown on drawings; and an explanation of continuous maintenance provisions, for the project. C. A survey of the property showing existing features, including contours at five-foot intervals, buildings, structures, streets, utility easements, rights-of-way, environmentally sensitive areas, and existing land uses. D. Site plans showing proposed contours at five-foot intervals, location and dimensions of buildings, open space, recreation areas,parking areas, circulation, landscape areas, subdivision platting and general arrangement. E. Detailed site statistics including but not limited to: 1. Total site area in both acres and square feet; 2. Total area in lots and number of lots being created; 3. Site coverage expressed in square feet and percentage of, a. Total footprint area of buildings and their proposed use b. Roadway and sidewalk paved surfaces; c. Parking lot areas and total parking spaces proposed; -6- H - 104 d. Any areas paved with permeable paving systems; e. Location and percentage of common open space and landscaped area; f. Number of residential units (if proposed) and approximate square footage; 4. Preliminary elevation and perspective drawings of all project structures. 5. A preliminary utilities plan, including fire hydrant locations. 6. A preliminary storm drainage plan with calculation of impervious areas. F. Landscape plan: 1. A landscape plan shall be created for the entire site with more detailed plans for each development within the respective portions of the larger site. The plan shall include a consistent palette of planting materials for use throughout the development. 2. Each lot/parcel must be landscaped so as to fit into the overall scheme of the MCO landscape, regardless of who owns the individual lot. 3. The landscape plan shall include a "significant" tree and native vegetation inventory. The inventory must be conducted prior to development. "Significant" trees are those with at least 3" diameter at breast height (dbh) trunks at 4' above grade. a. All trees deemed as "significant" shall be protected during construction. b. A tree protection plan shall be included as part of the landscape plan showing root zone protection areas, appropriate methods to exclude construction impacts. 4. Native plant and tree species. The use of native plant and tree species for landscaping is permitted and encouraged within the MCO. Specifically, drought resistant plantings will eliminate the need for irrigation other than collected rainwater. 5. Detailed specifications of plants and trees proposed for landscaping on site; F. A preliminary plat, if applicable, pursuant to Chapter 58.17 RCW and Chapters 16.04 and 16.08 PAMC. G. An off-street parking plan and circulation plan showing all means of vehicular and pedestrian ingress and egress to and from the site; and size and location of driveways, streets, sidewalks, trails, and parking spaces. Any new traffic control devices required for the safety of the project must be shown. H. Mailing labels of property owners within 300 feet of the proposed project pursuant to Section 17.96.140 PAMC. 17.37.100 Routing and staff recommendations. Upon receipt of an application satisfying the requirements of Section 17.37.090 PAMC, the Department of Community and Economic Development (CED) shall route the same to all appropriate City Departments. Each department shall return recommendations and comments regarding the application to CED. The Planning Division shall prepare a report to the Planning Commission summarizing the factors involved, recommendations of other departments, and CED staff recommended conditions, findings, and conclusions. -7- H - 105 The following characteristics shall be among those used by the Director of the Department of Community & Economic Development to determine whether a use is functionally integrated with or substantively related to, the central mission of the use: A. Functional association of buildings; B. How well are proposed uses integrated with one another; C. Ease of physical circulation/access connections; D. Potential for shared facilities or staff, E. Degree of interdependence among uses; F. Similar or common functions, services, or products. G. Proximity to areas previously developed under this MCO code section. A copy of the report shall be mailed to the applicant and copies shall be made available, for use by any interested party. 17.37.110 Planning Commission Public hearing—Scheduling and Notice. Upon receipt of an application satisfying the requirements of Section 17.37.090 PAMC, the CED shall schedule a public hearing before the Planning Commission. Public notice shall be given as provided in Section 17.96.140 PAMC. 17.37.120 Planning Commission Recommendation—Preliminary Development Plans. Prior to making a recommendation on an application for a preliminary MCO, the Planning Commission shall hold a public hearing. The Planning Commission's recommendation for approval, denial, or approval with modifications or conditions shall be forwarded to the City Council in written form based upon compliance with Section 17.19.050 PAMC and the following criteria: A. The proposed development will comply with the policies of the Comprehensive Plan and further attainment of the objectives and goals of the Comprehensive Plan. B. The proposed development will, through the improved utilization of landscaping, and integrated circulation systems, create an environment of higher quality than that normally achieved by traditional lot by lot development. C. The proposed development achieves smart growth goals and principles through infill, redevelopment, and establishment of a pedestrian and transit friendly environment. D. The proposed development will be compatible with adjacent, existing, and future developments. E. All necessary municipal utilities, services, and facilities, existing and proposed, are adequate to serve the proposed development. F. Internal streets serving the proposed development are adequate to serve anticipated traffic levels and the street system of the proposed development is functionally connected by an improved collector street to at least one improved arterial street. G. If the development is planned to occur in phases, each phase shall meet the requirements of a complete development. 17.37.130 City Council action—Preliminary development plans. The City Council shall consider the recommendation of the Planning Commission at a public meeting. The Council may approve, deny, or approve with modifications or conditions the -g- H - 106 submitted preliminary development plans. Approval shall be by Council action which incorporates the approved preliminary development plans by reference and shall include findings based upon Section 17.19.060, and 17.19.120 PANIC. 17.37.140 Final approval of a Mixed Commercial Overlay(MCO). Application for final approval of the MCO shall be submitted to City Council within two (2) years of preliminary development plan approval; provided that an applicant may apply to the Planning Commission, and the Commission may approve, one or more one-year extensions as the Commission may deem appropriate. For phased MCO's, each phase shall have an additional one (1) year period for final approval; and provided further that an applicant may apply to the Planning Commission, and the Commission may approve, one or more one (1)year extensions as the Commission may deem appropriate. The site must be under one ownership prior to final approval by the City Council, or the application for final approval must be made by the owners of the entire site. The final submittal documents shall include the following: A. A title report showing ownership of the parcel or parcels upon which the MCO is to be developed. B. Adequate assurance for the retention and continued maintenance of common open space, onsite facilities and the retention and continued maintenance of environmentally sensitive areas and their buffers. If development is to be done in phases, each phase must be identified and meet the requirements of this section. C. Final development plans that shall be in compliance with the approved preliminary development plans. D. The final plat, if applicable, pursuant to Chapter 58.17 RCW and Chapter 16.04 and 16.08 PANIC. E. Development and phasing schedule. F. Bond or other form of security acceptable to the City in a sufficient amount to complete the project or submitted phase, as determined by the City. 17.37.160 City Council final action. The City Council shall review the application for final approval at a public meeting, notice of which shall be given as provided in Section 17.96.140 PANIC, and shall approve, deny, or approve with modifications the final development plan and, if applicable, the final plat. Approval of the final development plan shall be by ordinance and a copy of the final MCO shall be filed with and made a part of said ordinance. The Zoning Map shall be amended to indicate the extent of the approved MCO, and all future development of the site shall be in conformance with the approved MCO. 17.37.170 Building permits. The Building Division shall issue building permits for structures that conform with the approved final development plans and with all other applicable City and state ordinances and regulations. All common usable open spaces, including recreational facilities, and other public improvements of each project phase must be completed before any Certificates of Occupancy will be issued except when bonds or other acceptable forms of security are deposited assuring the completion of such facilities within six (6) months of approval of a final MCO. -9- H - 107 17.37.180 Modifications after final approval. The final approval shall be binding upon the development. Design variations from the plan must be submitted to the Planning Commission and City Council for approval and amendment of the ordinance, except for minor changes, as follows: CED staff is authorized to allow minor adjustments in the development schedule, location, placement, height, or dimension of buildings and structures, not to exceed an alteration of ten percent (10%) in height or ten (10) feet in any other direction, when such minor changes and alterations are required by engineering or other unforeseen circumstances at the time of approval of the final development plans. Such adjustments shall not increase the total amount of floor space authorized in the approved final MCO, the number of dwelling units, density, or decrease in the amount of parking or loading facilities, or permit a reduction of setback of buildings to the closest boundary line, decrease the amount of open space or recreation facilities, change any points of ingress or egress to the site, or extend the development schedule for more than 12 months. Section 2 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 3 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 -Effective Date. This Ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five days after its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of June, 2014. Dan Di Guilio, Mayor ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney PUBLISHED: By Summary -10- H - 108 Planning Commission Hearing—April 23, 2014 PUBLIC HEARING: MUNICIPAL CODE AMENDMENT—PROPOSED MIXED COMMERCIAL USE OVERLAY: - The overlay zone is intended to provide alternative zoning regulations that permit and encourage design flexibility through the implementation of smart growth practices to promote redevelopment, infill, and functional innovation in mixed commercial developments. Chair Headrick opened discussion on the agenda item. Associate Planner Scott Johns responded to a series of questions from Planning Commissioners regarding opportunities for an increase in height that is provided through the Mixed Commercial Use Overlay (MCO). Questions and discussion ensued regarding stormwater planning bonus, height bonus, and landscaping standards. Director West provided a response to Commissioner Reimlinger as to how design expertise would be evaluated in consideration of an MCO. Mr. West said that the design process will involve selling the design to the neighborhood and creating an environment that is compatible with the neighborhood in which the project exists. Director West noted that trained professionals use certain tools to review site plans and architects are trained to address specific development standards. Commissioner Morris noted that good projects require some subjectivity. He would like to see the pre application notification public meeting that is held by the proponent require notice to a larger area than 300 feet. Director West noted that the 300 foot notice area is consistent with other overlay district notification requirements. Although notice is mailed to an area 300 feet around a site, the site is also posted such that anyone in the area will notice the posting and placed in the local newspaper. Discussion continued relative to transportation aspects, integration of this type of project into established neighborhoods and how other overlay zones function. Chair Headrick opened the public hearing. Cameo Little, 183 South Morse Lane, works for Olympic Medical Hospital. She believes that the review process and requirements of the proposed overlay will allow productive interaction between the reviewing agency and the proponent that will involve the public. She supported adoption of the overlay and believes that the flexibility it will provide will result in better functioning developments. There being no further comment, Chair Headrick closed the public hearing. H - 109 Commissioner Davis asked about handicapped parking. Planner Johns responded that handicapped parking is addressed in the Building Code and does not need to be separately addressed in the overlay standards. Further discussion between the Commission and staff revealed that some housekeeping items are needed in the draft. Director West stated that staff would like to recap what has been discussed, and present a more correct draft at the next regular Commission meeting before presentation to Council. It was agreed that deliberation would continue to the May 14 regular meeting and that staff should make the housekeeping and other discussed changes for a final recommendation. H - 110 Planning Commission Excerpt — May 14, 2014 PUBLIC HEARING (Continued from April 23, 2014): MUNICIPAL CODE AMENDMENT—PROPOSED MIXED COMMERCIAL USE OVERLAY: - Continued discussion of changes to proposed overlay zone from public hearing conducted on April 23, 2014. The new overlay is intended to provide alternative zoning regulations that permit and encourage design flexibility through the implementation of smart growth practices to promote redevelopment, infill, and functional innovation in mixed commercial developments. Associate Planner Scott Johns noted that corrections and clarifications had been made to the proposed Mixed Use Commercial Overlay per discussion during the public hearing conducted on April 23, 2014. Mr. Johns reviewed a May 14, 2014, Department Memorandum outlining those changes. In response to Commissioner Boyle, Planner Johns further explained setback requirements to gain additional building height under the proposed overlay. Limiting factors to gain additional height and floor area were discussed. Attorney Greenwood offered minor re wording to proposed Section 17.37.040 B.1 to refine the intent of the sub section. Commissioner Miller asked what the nexus is between public art and additional height. Planner Johns responded that there really is no connection between a requirement for public art and an increase in height. However, developments that are partially funded by State and Federal monies must provide a percentage of that funding in art. Commissioner Boyle asked if hard surfaced sidewalks would be required within a development site. Planning Manager Roberds responded that if the walkway areas are accessible to the public, they will be required to be hard surfaced to ADA standards. If walkways are not open to the public, but are strictly for private use, perhaps the walkway could be of a less sturdy material or be of a pervious material. An in depth discussion continued as to how the value of public art can be determined relative to bonus floor area. Commissioner Miller believed that since there is no connection between bonus floor area and art, the requirement should be removed. Commissioner Morris objected to the removal of the requirement. Commissioner Headrick suggested that the amount of public art be equal to the same amount of bonus floor area being sought. Commissioner Davis noted that it is difficult to quantify and qualify art as art may not appear art to everyone; art is a very subjective thing that can be debated extensively. Planner Johns suggested that, given the discussion regarding public art, a requirement be inserted that public art be required at the State standard of a minimum of 1% the value of the project up to $50,000. A lengthy discussion ensued regarding what is public art and how is it valued. It was determined that art would likely be appraised and that value would be used to calculate bonus floor area. H - 111 It was determined that staff would work the changes into the final ordinance and forward those corrections/amendments to Planning Commission members when the ordinance is forwarded to the City Council. Information relative to including public art as a component of the MCO would be worked into the final ordinance. Commissioner Morris moved to recommend approval of the Mixed Use Overlay to the City Council. The motion was seconded by Commissioner Boyle and passed 6—0. H - 112 "OFF'ORT NGELES -= WASH I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: NATHAN A.WEST,DIRECTOR COMMUNITY&ECONOMIC DEVELOPMENT SUBJECT: AMENDMENT TO Section 2.40 OF THE PORT ANGELES MUNICIPAL CODE PORT ANGELES FORWARD COMMITTEE MEMBERSHIP Summary: Staff has prepared an ordinance to amend the Port Angeles Forward Committee membership enabling more flexibility in membership and representation. Recommendation: Following the 2nd Reading of the attached ordinance, Council should adopt the ordinance as read. Background: At the May 6, 2014 Council meeting, City Council conducted the first reading of an ordinance to amend Section 2.40 of the Port Angeles Municipal Code. The changes enable a more flexible approach with opportunities for new member representation. As part of the 1st reading of the ordinance Council requested minor changes to the ordinance. The first change requested was for a more inclusive list of those that should be part of the Committee. The second change corrected and clarified intent relative to the term limits. Staff is available for additional questions on the proposed ordinance amendment. Attachments: Applications H - 113 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, amending Chapter 2.40 of the Port Angeles Municipal Code relating to the Port Angeles Forward Committee. THE CITY COUNCIL OF THE CITY OF PORT ANGELES do hereby ordain as follows: Section 1. Ordinance 3190, as amended, and Chapter 2.40 of the Port Angeles Municipal Code are hereby amended to read as follows: PORT ANGELES FORWARD COMMITTEE 2.40.030 Membership. A. Representation. 1. Two Council members and one alternate of the Port Angeles Forward Committee shall be appointed by the Mayor from the seven members of the City Council. 2. e Twelve members of the Committee shall be tiomitiated by and shall represent community organizations having interests in economic development in Port Angeles. These twelve members shall be appointed by the City Council in accordance with the City Council's Rules of Procedure. Examples of community organizations= that might be included in this category of membership are, without limitation: the Port of Port Angeles_ Clallam County_ Clallam Transit Authority, Port Angeles Downtown Association, Port Angeles Chamber of Commerce_ Port Angeles Business Association_ Clallam County Public Utility District No. 1, Clallam County Economic Development Council, Lower Elwha Klallam Tribe_ and others. Additional organizations for membership may be recommended by the Committee. -1- H - 114 one membef fepfesenting D""4 Angeles Trs eeiati6r Beaf �f n' et s One„, ,,,i e f „t;„n Peft Angeles rt,,,ri bef of remmefe-e 3. Three members of the Committee to be appointed by the City Council to serve as citizens-at-large. 4. Staff support for the Committee will be provided by the City of Port Angeles through designation and assignments by the City Manager. 5. Members may be removed from office for reasons deemed appropriate by the City Council, including, but not limited to, malfeasance in office or neglect of duties. B. Criteria. Criteria used in selecting citizen members shall include, but not be limited to, the following: 1. Members need not be residents of the City. 2. Members shall have displayed an interest in the work of the Committee. 3. Members shall be selected in accordance with all applicable statutes, including, but not limited to, non-discrimination, equal opportunity guidelines. 4. Members shall be appointed without regard to political affiliation. 5. Members shall not be City employees; provided that elected officials shall not be deemed City employees for purposes of this limitation. C. Terms. Terms for Council Members and citizens-at-large shall be as follows: 1. A full term of office shall be two years for City Council members;_ 2. A full term of office shall be three years for citizens at large. -23. The term of office shall start on March 1 of the year in which the appointment is made, provided that appointments to an unexpired term shall start as designated in the appointment. -34. Members of the Committee may be appointed to succeed themselves; provided that no person shall be allowed to serve more than three consecutive t4ee y terms. -2- H - 115 45. Appointments to fill an unexpired term shall be only for the remainder of that term, after which a reappointment may be made. -56. Members shall serve without pay. Section 2 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 3 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five days fter its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 20th day of May, 2014. Dan Di Guilio, Mayor -3- H - 116 ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: , 2014 By Summary -4- H - 117 "OFF'ORT NGELES -= WASH I N G T O N, U. S. A. CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: NATHAN A.WEST,DIRECTOR COMMUNITY&ECONOMIC DEVELOPMENT SUBJECT: REZONE PROPOSAL—REZ 14-01 PHILLIPS ETAL—RACE STREET BETWEEN 4TH/5TH STREETS Summary: Final consideration of rezone proposal of property from RS-7 Residential Single Family to CO Commercial Office. Recommendation: Following discussion, the City Council should conduct a second reading adopting the attached ordinance citing the attached findings and conclusions. Background: This issue involves a rezone of approximately 1.36 acres of property from Residential, Single Family (RS-7)to Commercial Office (CO). The subject area is between the north side of 5fh Street and the south side of 4fh Street east of Race Street, two lots (100 feet) deep from Race Street. The rezoning action will complete a rezone of the Race Street corridor that began in 2006. Because the proposal is subject to the review process prescribed in RCW 36.70B, codified as Section 18.02.070 of the Port Angeles Municipal Code, the application is limited to one"open record"public hearing and one closed record decision. All testimony and documents considered at the public hearing were transmitted to the City Council on May 6, 2014, along with the action recommended by the Planning Commission. No objections to the rezone were voiced either during the public hearing or during the written public notification period for the requested action. The City Council reviewed the public hearing record on May 6 and conducted a first reading of the ordinance. At this point, Council should conduct a final reading of the attached ordinance approving the proposed rezone and adopt the attached ordinance citing the attached findings and conclusions in support of that action. Staff will be available for questions. Attachments: Ordinance,findings,and conclusions Minutes H - 118 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, rezoning approximately 1.36 acres from Residential Single Family RS7 to Commercial Office CO. WHEREAS, the City received an application to rezone approximately 1.36 acres from RS-7 Residential Single Family to CO Commercial Office; and WHEREAS, a public hearing was conducted by the Planning Commission on April 9, 2014 and the Planning Commission recommended rezoning 1.36 acres from RS-7 Residential Single Family to CO Commercial Office; described as: All of Lot 1, the north 90 feet except the west 40 feet of Lot 2, the south 50 feet of Lot 2, and all of Lots 12-18, Block 175 of the Government Townsite of Port Angeles, situated in Clallam County, Washington, otherwise known as 825 East Fifth Street, 410 Race Street, and 834 East Fourth Street, Port Angeles, Washington. WHEREAS, the Planning Commission has recommended to the City Council approval of the rezone application; and WHEREAS, the requirements of the State Environmental Policy Act (Chapter 43.21C RCW)have been met; and WHEREAS, the City Council, after conducting a public hearing and considering the Planning Commission's recommendation, finds that there have been changes in circumstances since the current zoning of the property was adopted and that the proposed rezone is in the best interest of the City and its citizens and is consistent with the Comprehensive Plan; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: - 1 - H - 119 Section 1. The Findings and Conclusions marked Exhibit A and a map of the property marked Exhibit B are attached and hereby adopted and entered. Section 2. The Official Zoning Map, Ordinance 2801 as amended, is hereby amended to change the zoning of that property described on the first page from RS-7 Residential Single Family to CO Commercial Office. Section 3. The City Clerk is hereby directed to attach a copy of this Ordinance to the Official Zoning Map and to file certified copies with the Clallam County Auditor and Clallam County Assessor. Section 4 - Effective Date. This Ordinance shall take effect five days following the date of its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of May, 2014. Dan Di Guilio, M A Y 0 R ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: , 2014 By Summary H:\a ORDINANCES&RESOLUTIONS\2006-10.BradowRezone.032806.wpd April 22,2014 - 2 - H - 120 Planning Commission Minutes Excerpt April 9,2014 PUBLIC HEARING: REZONE APPLICATION—REZ 14-01 —PHILLIPS, ETAL, East side of Race Street between 4th and 5th Streets: A request to rezone approximately 1.36 acres from RS-7 Residential Single Family to CO, Commercial Office. Associate Planner Scott Johns reviewed the Department Report recommending approval of the rezone as proposed. Mr. Johns answered questions from Commissioners regarding existing uses and potential uses and how available on site parking would affect future uses. Any use proposed on the site would need to be in compliance with the City's parking requirements. Chair Headrick opened the public hearing Craig Phillips, 17009 North Highland Lane, Colbert,Washington 98005 is the applicant and was present for questions. In response to a question as to the intended use of the structure, Mr. Phillips indicated that he plans to serve Medicaid recipients in a similar manner to previous uses on the site. He is planning a small residential care program. He does not plan to demolish the existing structure but will remodel the interior. There being no further comments, Chair Headrick closed the public hearing. Following brief discussion, Commissioner Reimlinger moved to recommend approval of the rezone citing the findings and conclusions identified in the staff report as follows: Findings Based on the information provided in the Community Development Staff Report for REZ 14- 01 dated April 9, 2014,including all information in the public record file, comments and testimony presented during the public hearing, the Planning Commission discussion and deliberation, and the above listed conditions of approval, the City of Port Angeles Planning Commission hereby finds that: 1. An application for rezone of 3 parcels from RS-7 Residential Single Family to CO Commercial Office was received by the City of Port Angeles Department of Community & Economic Development on March 12, 2014, from Craig Phillips. Mr. Phillips (owner of 825 5fh St.)is joined in the rezone request by Ron Nevaril (owner of 410 Race St.) and Bowport Estates, Inc. (834 4fh St.). The application was deemed to be complete on March 12, 2014. 2. Land use in the area is a mix of low and high density residential uses: high density apartments to the west of the subject parcels and single-family residential on, south, and east of the site. Commercial uses and two churches are located in the neighborhood along the Race Street corridor as well as Erickson Park and Civic Field. 3. The subject site is located in the Peabody Creek Neighborhood which is found in the City's North Central Planning Area on the City's Comprehensive Plan Land Use Map. 4. The City's entire Comprehensive Plan and Land Use Map were reviewed with respect to the proposal. The following elements, goals, and policies were found to be most relevant to the proposal: Land Use Element Policies, Goal A, Policy No. 1, 2; Goal A, Objective H - 121 Planning Commission Minutes Excerpt April 9,2014 No. l; Goal B; Goal C, Policy No. l; Goal D, Policy No. l; Goal E, Policy No. 2; Transportation Element, Goal A, Policy No. 3; Goal B, Policy No. 14. These references are attached as Attachment B to the April 9, 2014 staff report. 5. The City's Comprehensive Plan provides an expected framework for land use decisions within the City. The zoning of any property must be consistent with the Comprehensive Plan Land Use Map that illustrates where certain classifications of uses may occur within the City. 6. In accordance with Section 17.03.020 of the Port Angeles Municipal Code, changes to the City's Zoning Map must be in the public interest and must be consistent with the Comprehensive Plan and Land Use Map 7. The subject properties are identified on the City of Port Angeles Comprehensive Plan Land Use Map as being located mostly in the Commercial designation with the western portion of the 825 E. 5th parcel located in an imprecise margin between Commercial (C) and Medium Density Residential (MDR) designations. An imprecise margin allows flexibility in specific site boundaries. 8. A rezone of 14 parcels to Commercial Office(CO) along the Race Street corridor between 4th and 7th Streets (REZ 07-01)was approved on September 4, 2007, and codified by Ordinance 3296. This rezone was approved following redesignation of the Race Street area on the City's Comprehensive Plan Land Use Map in 2006. The 2007 rezone began a rezone of the Race Street corridor between 4th and 7th Streets subject to the Comprehensive Plan Land Use Map designation to Commercial Office (CO), 100 feet deep each side of Race Street. The subject parcels were not included in the earlier rezone action due to the inability to contact property owners at that time. Those three remaining property owners have now requested a similar rezone to Commercial Office. 9. The subject rezone area is comprised of 3 property ownerships, two ownerships are in alignment with other commercial development boundaries along Race Street being 100 feet in depth from Race Street. One property contains a structure (825 East 5th Street) that spans 6 full City lots. The structure was built in the 1950's in nonconformity to the underlying zone and operated as a nursing home for that entire period of time. Designation of the building site as one zone will avoid conflicts with building standards and/or uses in future use of the property. 10. Spot zoning is an arbitrary and unreasonable zoning action by which an area is specially zoned for a use classification totally different from and inconsistent with the classification of the surrounding land and not in accordance with a comprehensive plan. The reasons for invalidating a rezone as an illegal spot zone usually include one or more of the following: (1) the rezone primarily serves a private interest, (2) the rezone is inconsistent with a comprehensive plan or the surrounding territory, or(3) the rezone constitutes an arbitrary and capricious action. 11. The CO zone is the City's least intensive commercial zone and is intended to function as a transition area between residential and more intense commercial activities or impacts. Uses permitted in the CO zone include financial service offices, real estate service offices,personal service facilities, business and professional offices, child care centers, medical/dental clinics and offices and laboratories, and detached single family residences that meet the area and dimensional requirements of the RS-7 zone. H - 122 Planning Commission Minutes Excerpt April 9,2014 12. Race Street is designated as part of the City's alternate crosstown traffic route. Adopted policies suggest that increased traffic congestion that impairs transportation mobility along this route will not be encouraged. The crosstown route was created to relieve pressure on the principal arterial (SR 101) and the minor arterial (Marine Drive) corridors particularly through the Downtown area. Access to uses along the crosstown route will be reviewed to avoid negative impacts to the route that will not impede traffic flow. 13. Commercial Office uses generally generate less traffic than more intensive commercial uses and therefore should have relatively little impact to traffic flow on Race Street. 14. Notice of the rezone application was placed in the Peninsula Daily News on March 18, 2014. Surrounding property owners were notified by mail and the site was posted on March 14, 2014. No written public comment was received by the end of the written public comment period that ended on April 1, 2014. 15. The City's SEPA Responsible Official issued a Determination of Non-Significance on April 7, 2014. This satisfies the City's SEPA responsibilities. The action is a non project action. Future development will require individual review dependent on the proposed action. 16. The proposal is a site specific rezone per R.C.W. 36.70B Local Project Review ("The Regulatory Reform Act"), codified in Port Angeles Municipal Code (PAMC) as Section 18.02.070. The application is limited to one"open record"public hearing and one closed record decision. A public hearing will be conducted by the Planning Commission. All testimony and documents considered at the public hearing will be transmitted to the City Council along with the action recommended by the Planning Commission. The City Council will consider the record of the Planning Commission at a public meeting and will then decide whether to grant the requested rezone. Appeals must be based solely on the information contained in the official file and shall be filed with Superior Court. Conclusions: Based on the information provided in the Department of Community Development Staff Report for REZ 14-01 dated April 9, 2014, including all of the information in the public record file, comments, and testimony presented during the public hearing, the Planning Commission's discussion and deliberation, and the above listed conditions of approval and listed findings, the City of Port Angeles Planning Commission hereby concludes that: 1. As proposed, the rezone is in compliance with the City's Comprehensive Plan and Land Use Map. 2. The rezone provides a low intensive commercial transition area between residential land uses and an established traffic corridor, and continues the established urban design of the area as is identified on the City's Comprehensive Plan Land Use Map. 3. The proposed rezone is compatible with surrounding zones and land uses and provides a logical transition between zones. 4. The rezone is not a spot zone as it does not meet the criteria for a spot zone The motion was seconded by Commissioner Boyle and passed 5—0. H - 123 a u'o �i,r+VI uuuuuuli 4�r ��Ilf�� ii ,,. �/ ✓ //. „//�/ /r% r/r��,;. ,.,. 1. ,.';';� i� ,�� /' �/ / ,,;,,r( �,l//✓ n >fl ///,.ai J rt;-,;, ,,, // r ;,+,r: I//a/. ,,,/ �r// r.%� � r� r � I 1 1 / r r / /✓/ r/o/;;,�1 �, � 11 r/i rr r Y Phillips et.al. • /OR / �pllliv' � W A S H I N G T O N, U. S. A. ..... iiiiiiiiiiiiiiiiiiiiiioP CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL FROM: BYRON W. OLSON,CHIEF FINANCIAL OFFICER SUBJECT: AN ORDINANCE OF THE CITY OF PORT ANGELES,WASHINGTON REPEALING CHAPTER 3.05,PURCHASING POLICIES AND PROCEDURES AND CHAPTER 3.06, INVESTMENT OF FUND OF THE PORT ANGELES MUNICIPAL CODE. Summary: The City has been involved in an extended process to develop its Long-Range Finan- cial Plan. As part of that development process, was the consolidation of all financial policies into a single, unified document more readily accessible to Councilmembers, staff and the public. Included in the Financial Policies document are policies related to the City's Long-Range Finan- cial Plan as well as Operating Policies, Accounting & Reporting Policies, Budget Policies, Debt Management Policies, Investment Policies, Purchasing Policies and Post-Issuance Compliance for Governmental Bonds Policies. The proposed ordinance recommends repealing Section 3.05, Purchasing Policies and Procedures and Section 3.06, Investment Policies. They will be replaced with similar policies included in the Financial Policies document that will be adopted by Resolution by Council. Recommendation: Move to adopt the Ordinance to repeal Section 3.05 and Section 3.06 of the Port Angeles Municipal. Background/Analysis: Background/Analysis: The City has a variety of financial-related pol- icies that have been adopted by ordinance, resolution, or City Manager direction. They exist in a variety of forms and formats and have not been consolidated into a unified document for ease of use by Council, staff or the General Public. Combined with the efforts on the City's Long-Range Financial Plan, staff began to look at all ex- isting financial pronouncements of the City. Quickly, it became very evident that the lack of a sin- H - 125 Staff Report to Council Regarding Ordinance to Repeal Section 3.05 and Section 3.06 of the PAMC Page--2— gle, comprehensive document created opportunity for confusion and lack of compliance with es- tablished policy direction for the City. The Long-Range Financial Planning process also facilitated the need to review the existing poli- cies to make sure that they could meet the existing and future needs of the City in conformance with the City's long-range vision and goals. We have held two (2) separate work sessions with Council to review the proposed policies and gather input on recommend changes to the proposed policies. In addition, we will be conducting public hearings on May 6th and May 20th as part of the resolution adoption process for the City of Port Angeles Financial Policies. The proposed ordinance that will repeal Section 3.05 and Section 3.06 will aid in giving clarity to the City's Financial Policies. If you have any questions prior to the meeting,please give me a call or send me an e-mail. BWO:mt H - 126 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, repealing Chapter 3.05, Purchasing Policies and Procedures and Chapter 3.06, Investment of Funds of the Port Angeles Municipal Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DOES HEREBY ORDAIN as follows: Section 1. Chapter 3.05 of the Port Angeles Municipal Code, as adopted by Ordinance 2628, on February 15, 1991, and as subsequently amended, is hereby repealed in its entirety. Section 2. Chapter 3.06 of the Port Angeles Municipal Code, as adopted by Ordinance 1882, on June 24, 1976, and as subsequently amended, is hereby repealed in its entirety. Section 3 - Severability. If any provisions of this Ordinance, or its application to any person or circumstances, is held invalid, the remainder of the Ordinance, or application of the provisions of the Ordinance to other persons or circumstances, is not affected. Section 4 -Effective Date. This Ordinance shall take effect five days after the date of its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of , 2014. Dan Di Guilio, Mayor ATTEST: Janessa Hurd, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: By Summary H - 127 El all FOR A I' , `- W A S H I N G T O N, U. S. A. � CITY COUNCIL MEMO DATE: May 20, 2014 TO: CITY COUNCIL MEMBERS FROM: BOB COONS,HUMAN RESOURCES MANAGER SUBJECT: UPDATE TO CITY PERSONNEL POLICY&PROCEDURES MANUAL Summary: The City Personnel Policy &Procedures Manual was last updated in 2009. Attached is a comprehensive updated Personnel Manual, recently completed by working in conjunction with the Washington Cities Insurance Authority legal staff. This document needs to be approved by the City Council in the form of a Resolution. The Personnel Manual has been distributed to the City labor unions for review for areas that may be subject to collective bargaining,plus reviewed by the City Attorney, Human Resources, and Directors. Most of the updates are in areas affecting various employment laws and regulations and generally updates to make it more in line with common personnel practices and procedures in place at the City. Recommendation: Approve the attached Resolution amending the City of Port Angeles Personnel Policy &Procedures Manual. Background/Analysis: It has been several years since the City completed a comprehensive update to the City's Personnel Policy and Procedures Manual. This process is completed by review from Washington Cities Insurance Authority (WCIA)legal staff and Human Resources to update current personnel practices and procedures. The document is reviewed by Department Directors and the City Attorney. Following that, it is provided to the Union representatives for discussion of changes that may be subject to collective bargaining. All this has been completed and we are now ready for City Council approval by Resolution. The vast majority of the changes you will see are updates to various personnel related laws. Note: I have separated the sections that WCIA has modified, as most of these are legal updates. Other sections are from Human Resources. The following is a summary of the changes: • Updated sections by WCIA: 0 2.00 Equal Employment Opportunity statement 0 2.01 Workplace Harassment—retaliation 0 2.02 Nepotism Policy 0 2.17 Reporting improper governmental action and reporting procedures. I - 1 0 3.12 Temporary modified or light duty—new section 0 4.05 Separation of Employment. 0 7.00 Vacation: new paragraph regarding paid leave under the State law concerning domestic partners. 0 7.02 Military Leave Law update. 0 7.05 Legal update on the various leave laws: Federal Family Medical Leave Act (FMLA), State Family Leave Act (FLA), Family Care Act, domestic partners act, medical certifications, duration of leaves and job restoration after leave, Washington pregnancy leaves laws, and State law regarding breast feeding requirement for employers. 0 8.02 Reporting workers compensation injuries; adding language regarding disability laws and reasonable accommodations. 0 8.05 Prevention of Workplace Violence; legal update. 0 9.03 Causes for disciplinary action, expanded section. 0 10.00 Substance Abuse and Drug Testing; added a paragraph concerning use of marijuana in the workplace. Other Personnel Manual Updates: • 2.16 Complete new City Computer and Information Technology Policy. This is completely re-written as the prior policy is over 10 years old and did not even address such items as social media, modern IT communications systems and cyber security issues. This is a major change as IT security has become a national problem and our policy must comply with "best practices"to ensure protection. • 2.22 Inclement Weather Policy: clarified expectations for employees when city facilities are closed. • 3.05 Startin g Salary for new employees: added City Manager approval for hiring that may offer incentives in the compensation package due to relocation,paid leave credits, and other related hiring incentives to attract and hire in difficult position to fill. Examples include engineering classes, certain management positions, and some technical jobs. • 4.02 Reclassification Procedures: added a process for classification review by H.R. during the budget development procedures. • 5.09 Vacation Cash Out—deleted. • 11.00 Complaint Resolution procedures: Changes the procedure from a grievance process to a more informal complaint resolution process. • 12.04 Tuition Reimbursement: added language for employee to submit an education plan, how it benefits the city, and changing a passing grade from "C"to 3.0. Attachment: Draft update—City Personnel Policy and Procedures Manual 1 - 2 RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington,amending the Personnel Policy and Procedures Manual in its entirety,in compliance with current laws,rules,regulations,and practices. WHEREAS, the City's Personnel Policies and Procedures Manual was last updated in 2006; and WHEREAS, the City desires to update its Personnel Policies and Procedures Manual to comply with changes to employment law and regulations, and changes to City policy and procedures; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles as follows: Section 1. The City of Port Angeles Personnel Policy and Procedures Manual is hereby amended in its entirety as outlined in the attached Exhibit"A". PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 20t1 day of May, 2014. Dan Di Guilio, Mayor ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney H:Aa ORDINANCES&RESOLUTIONS\RESOLUTIONS.2014\13-Personnel Manual Revisions.wpd —1- 1 - 3 CHAPTER 1 - PURPOSE, APPLICABILITY, AND DEFINITIONS 1.00 PURPOSE The Personnel Policies and Procedures Manual for the City of Port Angeles are established by the City to: A. Provide a uniform system of personnel administration B. Support a fair and equitable process for recruitment, selection, placement, promotion, and separation of City employees in compliance with applicable State and Federal laws and regulations; C. Assist supervisors and managers in the development and implementation of proper practices and procedures concerning the administration of human resources within the City Departments; and 1.01 APPLICATION Except where specifically indicated, these Policies and Procedures apply to all regular full- time and regular part-time employees of the City of Port Angeles, as well as to probationary employees. These Policies/Procedures supersede any previous personnel resolutions, policies, and procedures relating to the same subjects. 1.02 CONFLICTS WITH LABOR AGREEMENTS In specific instances where these Policies and Procedures may conflict with terms or conditions of a labor agreement, the labor agreement shall prevail. 1.03 CITY'S RIGHT TO ESTABLISH, AMEND, OR REPEAL The City reserves the exclusive right to repeal, modify, or amend any portion or all of these Personnel Policies and Procedures at any time and with any such changes to take effect immediately, with or without notice, subject to approval of the City Council by Resolution. The Human Resources Manager shall be responsible for interpretation of these Policies and Procedures. If provisions under law change, the statutory and common laws supersede these policies. 1.04 DEFINITIONS Anniversary Date: The date of first hire by the City in a regular full-time or regular part-time position, including the employee's probationary period. Appointing Authority: The City Manager or Department Directors authorized to hire or remove an employee from City employment. Bargaining Unit: A group of classifications represented by a labor union. 1 - 4 City Service: The amount of time employed by the City in a regular full-time or regular part- time position (e.g., total City service used for computing vacation accrual). Classification: A position or group of positions sufficiently similar in nature, duties and responsibilities, knowledge, abilities and skills, and qualifications to permit combining them within a single job title for purposes of wages and hiring procedures. Classification Seniority: The amount of time employed by the City in a regular full-time or regular part-time position within a classification (e.g., class seniority used for lay-off procedures). Cost of Living Adjustment (C.O.L.A.): An across-the-board change in the salary range of a classification authorized by the City Council and negotiated through the collective bargaining process. This excludes salary changes resulting from merit increases, market adjustments, decreases from disciplinary actions, or other similar salary changes. Demotion: The assignment of an employee, voluntarily or involuntarily, to a classification having a lower maximum salary. Disciplinary Action: The action taken by the City relative to unsatisfactory performance or resulting from action by an employee in violation of an established standard, rule, procedure, law, or other legitimate reason, including, but not limited to, verbal reprimand, written reprimand, suspension, demotion, or dismissal of employment. Dismissal: The termination of employment by the City of an employee. Employer: The City of Port Angeles, a municipal corporation of the State of Washington. Employment Status: An employee's status consists of two components; First an employee is regular, temporary, probationary, or seasonal. Second an employee is also full-time or part-time. Merit Salary Increase: An incremental salary increase based upon satisfactory performance, as recommended by the Department Director and approved by the City Manager and Human Resources. Non-Represented Employees: Employees of the City not represented by a labor union. Personnel File: The official record of employment maintained in the Human Resources Office, for each employee.. Position: A single job consisting of various tasks, duties and responsibilities assigned to an 1 - 5 employee. Promotion: The assignment of an employee to a position having a higher salary range. Represented Employees: Employees of the City who are lawfully represented by a labor union, recognized by the City. Salary: Base wage, monthly, bi-weekly, or hourly, paid to an employee. Salary Range: The approved range of wages for each classification, starting with a minimum pay with equal step increments up to a maximum rate of pay. Salary Step: An established increment of pay within the salary range for a classification. Transfer: The assignment of an employee from one position to a different position within the same classification or similar classification with the same salary range and having similar qualifications. 1.05 TYPE OF EMPLOYMENT STATUS Nothing in these Personnel Policies are to be construed to create an employment contract. A. Probationary Status: The initial period of employment, which is considered a continuation of the selection process, in which the employee's work is evaluated. During this period, the employee may be dismissed at any time,with orwithout cause, and is not subject to an appeal procedure. B. Regular Status: The period of employment after completion of the probationary period. C. Regular Full-Time: A position budgeted and authorized to work at least 2,080 hours per year on a regular basis. D. Career Part Time A position budgeted and authorized to work less than 40 hours per week on a regular basis that is eligible to receive pro-rated paid leave and benefits. C. Temporary: A position authorized to work on a temporary basis including , a special project , grant funded program, during peak workloads, to fill a position during recruitment, or other similar work with a limited period of time Employment may be for 40 hours per workweek for temporary periods or"on call" as needed. Employees in this category do not accrue any benefits or employment status with the City and may be dismissed at any time, with or without cause, and is not subject to appeal procedures. 1 - 6 CHAPTER 2 - GENERAL WORK RULES 2.00 EQUAL EMPLOYMENT OPPORTUNITY The City treats all applicants and employees equally and without regard to race, religion, creed, color, national origin, sex, age, marital status, sexual orientation, veteran status, disability, sexual orientation, genetic information orother basis prohibited by State or Federal law. The City will make positive effort to attract, hire, and retain qualified candidates who are within recognized minority groups,females, veterans, disabled persons, or candidates within other protected status through Federal and/or State law. This process includes providing recruitment notices to State veterans' offices, Employment Security, as well as to local Native tribes, to recruit candidates. The City will also promote advancement of qualified employees within these groups through internal efforts when possible. The City provides reasonable accommodation to qualified disabled employees as required by law. It is also the City's policy to foster and maintain a nondiscriminatory work environment for all employees. Any employee who believes he/she has been or is the victim of discriminatory treatment shall bring this concern immediately to the attention of the Department Director and the Human Resources Manager for investigation and appropriate action. 2.01 WORKPLACE HARASSMENT Every employee has the right to work in an environment free from harassment. Harassment of any employee on the basis of his or her race, religion, color, national origin, age, sex, sexual orientation, marital status, genetic information or the presence of any physical, mental, or sensory disability is a serious violation of City policy and state and federal laws and will not be tolerated. HARASSMENT DEFINED: Harassment is unwelcome conduct based on a legally protected class characteristic and can take many forms, including demeaning or racial slurs, offensive comments, jokes, innuendos, unwelcome compliments, epithets or name-calling, intimidation, offensive pictures or cartoons, pranks, ridicule or mockery, insults or putdowns, or other verbal or physical conduct or threats and which: (1) has the purpose or effect of creating an intimidating, hostile, or offensive working environment to reasonable people; (2) has the purpose or effect of unreasonably interfering with an individual's work performance; or (3) otherwise unreasonably affects an individual's tangible employment opportunities. Petty slights, annoyances, and isolated incidents ordinarily do not constitute illegal workplace harassment. Harassment from supervisors, co-workers, customers and contractors is prohibited in the workplace. SEXUAL HARASSMENT DEFINED: Sexual harassment is a type of harassment and occurs 1 - 7 when the types of verbal and physical conduct described above is sexual in nature or is gender-based, i.e., directed at a person because of their gender. Sexual harassment exists in the workplace when: (1) submission to the conduct is either explicitly or implicitly a tangible term, condition or privilege of employment; (2) Submission to or rejection of the conduct is used as the basis of an employment decision affecting such individual; or(3)the conduct unreasonably interferes with the individual's job performance or creates a work environment that is intimidating, hostile, or offensive to reasonable people. Sexual harassment can include: unwelcome verbal behavior such as comments, suggestions, jokes or derogatory remarks based on sex; physical behavior such as pats, squeezes, repeatedly brushing against someone's body, or impeding or blocking normal work or movement; visual harassment such as posting of sexually suggestive or derogatory pictures, cartoons or drawings, even at one's work station; unwanted sexual advances, pressure for sexual favors and/or basing employment decisions (such as an employee's performance evaluations, work assignments, or advancement) upon the employee's acquiescence to sexually harassing behavior in the workplace. COMPLAINT PROCEDURE: If an employee feels that s/he or other employees have been subjected to harassment of any kind, s/he is encouraged to immediately identify the offensive behavior to the harasser and request that it stop. If the employee is uncomfortable in addressing the matter directly with the harasser, or if the behavior does not stop, then the employee should discuss the matter immediately with the Human Resources Manager or his/her Department Head. Supervisors and managers who receive a harassment complaint shall contact the Human Resources Manager immediately. All complaints will be investigated promptly, impartially, and discreetly. Upon completion of the investigation, the appropriate parties may be notified of the findings. Any supervisor, agent, or other employee who has been found to have harassed an employee will be subject to prompt, appropriate corrective action, ranging from a disciplinary warning to termination. RETALIATION: The City will not tolerate retaliation against any employee for reporting, in good faith, instances of harassment, or for making a good faith report of discrimination. Likewise the City will not tolerate retaliation against an employee or witness for bringing forward, in good faith, a complaint of harassment or discrimination or for participating in a workplace investigation regarding these complaints. Examples of prohibited conduct that may rise to the level of employee retaliation include the following: A. Changing the terms or conditions of employment because the employee brought forward or participated in a complaint or investigation; B. Discussing or gossiping about an employee's complaint or an employee's participation in an investigation; C. Ignoring or avoiding the employee in an obvious manner; D. Failing to provide the employee with crucial information necessary to perform his/her job or insure his/her safety in the workplace; E. Blaming the employee for causing a problem as a result of the complaint; F. Continuing with discriminatory or harassing behavior; G. Remarking that the employee should transfer to another department, be terminated, or resign; 1 - 8 H. Threatening or harassing the employee; or I. Openly laughing or making jokes in a derogatory manner at the employee's expense; We expect that employees of Port Angeles will act responsibly to maintain a pleasant working environment, free of harassment, allowing each employee to perform to his or her maximum potential. The City encourages any employee to bring questions he or she may have regarding harassment of this type to the Human Resources Manager. Sustained evidence of retaliation will lead to consequential discipline to include termination. 2.02 NEPOTISM: Employment of Relatives Nepotism: The practice of showing favoritism to relatives in appointment, employment, promotion or advancement by any public official in a position to influence these personnel decisions. The purpose of this policy is to ensure equal opportunity and effective employment practices by avoiding actual or perceived favoritism, discrimination, or actual or potential conflicts of interest by or between employees of the City of Port Angeles. These employment practices include: recruiting, testing, hiring, compensation, assignment, use of facilities, access to training opportunities, supervision, performance appraisal, discipline and workplace safety and security. It shall be the policy of the City of Port Angeles to regulate assignment and supervision of employees involved in familial, personal or business relationships in such a manner as to reduce any"conflict of interest" and provide for their well-being and safety. Conflict of interest: Any actual, perceived or potential conflict of interest in which it reasonably appears that a department employee's action, inaction or decisions are or may be influenced by the employee's personal or business relationship. Accordingly, the City generally will not employ family members or two individuals living together in the same household in positions where: • one relative would supervise or audit the work of the other, directly or indirectly; • both relatives would have the same immediate supervisor; or • other circumstances exist that, in the judgment of City management would create a situation of actual, perceived, or potential conflict of interest. Family member includes the employee's spouse, registered domestic partner, siblings, parents, children (biological, adopted, step, orfoster), grandparents, grandchildren, nieces, nephews or in-laws. The City also may refuse to employ close relatives of officers or other high-level employees of our suppliers or others with whom the City deals where such a restriction is necessary to avoid the actuality or appearance of conflict of interest, or to protect confidential information. 1 - 9 Should one of the above situations occur, the City will allow either of the employees to transfer to a vacant position for which s/he is qualified. If no suitable position is available, the employees will be given the opportunity to propose which of them will resign. 2.03 SOLICITATION POLICY The following guidelines apply to soliciting in the workplace. Except for authorized City programs, such as participation in the United Way, and with prior approval, individuals not employed by the City are not permitted to enter City premises at any time to solicit, survey, petition, or distribute literature. This restriction includes charity solicitors, salespersons, questionnaire surveys, union organizers or any form of solicitation or distribution. Employees may only approach each other regarding reasonable forms of solicitation during non-work time (including before and after the start of all involved employees'work periods, and during breaks and meal periods)and in non-work areas. Any other solicitation requires approval of the City Manager. 2.04 HEALTH BENEFITS FOR CITY EMPLOYEES The City provides health related insurance benefits for regular full-time and Career part-time employees budgeted to work in excess of 30 hours perweek. Details of all health insurance benefits are provided in summary plan descriptions provided to employees when hired. The following is only a summary of current programs. You can obtain more information about any of these programs from Human Resources. Health Benefit Programs: Regular full time and Career Part time employees are eligible to participate in the City's Health benefit program. The various health benefits include medical, dental, vision, life insurance, long-term-disability, and Employee Assistance Program. Some of these programs are not are eligible for Career par time due to plan design and eligibility requirements set by the insurance providers. The City pays most of the premium for the employee, spouse, registered domestic partner, and eligible dependents. For medical insurance. The employees pay a portion of the premium determined by city policy or as provided for in the labor contracts. Employee portions of premiums are paid through payroll deduction. Medical Waiver Cost Share Program: This program terminates December 31, 2014. An employee enrolled in the AWC medical plan may opt to waive their medical coverage if they have other comprehensive medical insurance, and receive one-half of the monthly insurance premiums, subject to certain conditions established by the City and AWC. Employees interested in participating in this program should contact Human Resources to find out more information and whether you may qualify. 1 - 10 Flexible Benefits Plan The Section 125 plan allows you to use pre-tax dollars to pay for certain qualifying expenses, including medical insurance premiums, non-covered medical expenses, and dependentcare. Retirement, Deferred Compensation, and Retiree Health Savings Plan: The City of Port Angeles has three separate ways to help you save for a secure retirement. Consult Human Resources or your Plan documents for details. • Retirement Plans As a regular City employee, you are required to participate in the State of Washington Public Employees' Retirement System (PERS) or the Law Enforcement Officers and Firefighters Retirement System whichever is applicable by law. Eligibility and procedures for retirement are governed by State law. Details are provided during orientation. Additional information is available from Human Resources.. • Deferred Compensation Plan This is an optional program. You may defer a portion of your wages through payroll deduction on a pre-tax basis and invest it with either ICMA or Great West. The City contributes funding for deferred compensation in some of the labor contracts and for management and non-represented employees. • Retiree Health Savings Plan The City participates in the Retiree Health Savings Plan (RHS) through ICMA. This plan allows employees to divert a portion of vacation and sick leave cash out upon retirement . Currently no bargaining units have opted for this benefit, only the management and non- represented employees have a RHS plan in place. Contact Human Resources for eligibility as not all employees have this benefit. 2.05 DEPARTMENT WORK RULES Each Department is responsible for establishing and distributing departmentwork rules and regulations. Such work rules and regulations must be consistent with these Policies and Procedures, the collective bargaining agreements, and Civil Service Rules/Regulations, if applicable. 2.06 CLASSIFICATION PLAN The Human Resources Office establishes and maintains the Classification Plan for the City. The Classification Plan consists of Job Descriptions for each classification, together with established salary ranges as adopted by the City Council. 2.07 JOB DESCRIPTIONS The Human Resources Office develops and maintains job descriptions for each classification in the City, which includes the nature of work, the essential job functions, examples of assigned duties and responsibilities, educational and experience qualifications, and knowledge, abilities, and skills. I - 11 2.08 SMOKING IN THE WORK PLACE Smoking is prohibited in City Hall and all City work locations. Smoking is permitted only in outdoor areas at least 25 feet from any building entrance/exits or air vent. This policy extends to all work areas, including public areas, lobbies, restrooms, stairways, elevators, employee lounges, and hallways. Smoking in City vehicles is also prohibited. Smoking areas consistent with the intent of this policy may be designated by the Department Directors for their work locations. .. Failure to comply with this policy is grounds for disciplinary action. 2.09 BULLETIN BOARDS Each City Department and major Division (if in a different work location) maintains an employee bulletin board for official City notices. This bulletin board is to be used for job postings, safety notices and other information of City business. Personal information such as the sale of items is prohibited on an Official City Bulletin Boards. 2.10 POLITICAL ACTIVITY The City recognizes and fully supports the right of employees to vote, to express their opinions, to hold any political office, and to participate in any political campaign. However, for the good of the City, and to avoid potential conflict of interest, please keep in mind the following guidelines. • Public facilities or resources may not be used to assist the campaign of a candidate or the promotion or opposition of a ballot proposition; employees may not campaign or assist any campaign activity during City work hours. • No employee who may come into contact with the public may wear or display campaign buttons or literature during City business hours. • Employees participating in fund raising or other campaign activities must make clear that they do not represent the City and the City does not endorse the candidate or position. • Employees may not attempt to obtain political contributions from co-workers through threat or promise of differential treatment on the job. 2.11 RECEIPT OF GIFTS Employees may not solicit or accept a gift, compensation, or other item of value from anyone doing business with the City. Unsolicited gifts not returnable will be donated to a non-profit organization to be determined by the City Manager or Department Director. . Questions 1 - 12 regarding application of this policy should be directed to the City Attorney. 2.12 CARE OF CITY PROPERTY Employees are expected to exercise reasonable care in the use of City property and to utilize City-owned property only for authorized official City business. Negligence in the care and use of any City-owned property may be considered cause for disciplinary action, including suspension and/or dismissal from City employment. Unauthorized removal of City-owned property from the City's premises or its conversion to personal use is prohibited and is cause for disciplinary action. 2.13 RETURN OF CITY PROPERTY City-owned property issued to an employee must be returned to the employeratthe time the employee terminates employment or upon request of the employee's immediate supervisor, or Manager within the Department. This includes, but is not limited to, city identification, keys, personal computers, tools, workbooks or training materials, uniforms, calculators, or any other equipment or property of the City. 2.14 CITY DRESS CODE All employees must maintain their personal grooming and hygiene and wear proper work clothes to adequately perform their work in a safe manner, as well as present a favorable image to the public. .. To meet this objective, and recognizing that dress standards vary depending on the location and type of work, Department Directors are responsible for ensuring that these guidelines are implemented and followed in their operational areas, in accordance with the specific policies below: 1. Work clothes and grooming must meet required safety rules and regulations. 2. Work clothes and grooming may not be overly faddish or extreme, based on community and social acceptability, as determined by supervisors, on a case-by-case basis. This includes body piercing and tattoos that may be depicting negative or offensive images or words. These may be allowed if covered by clothing. 3. Work clothes must be clean and well maintained. 4. Work clothes and personal grooming must be appropriate for the working conditions of the job. 2.15 ETHICAL RULES In addition to those set forth in these Policies and Procedures, State statutes provide certain ethical rules which are attached for easy reference and are considered a part of these Policies and Procedures. See Chapter 42.20 and 42.23 RCW (attached). 2.16 COMPUTER AND INFORMATION TECHNOLOGY POLICIES 1 - 13 It is the policy of the City of Port Angeles to maximize the cost-effective use of computer systems as a means of improving productivity for employees. The City provides communication resources for electronic mail (email), internet access, telephone and voicemail, facsimile machines, cellular telephones, and other electronic communication devices (collectively referred to as the City's Technology Resources) to employees to assist in and facilitate City business and communications. This policy does not address all required, allowed, or prohibited behaviors by employees, but merely covers common examples. In general, the City relies on the good judgment of its employees to ensure that City Technology Resources are used in the public's best interest. No Expectation of Privacy: By using the City's Technology Resources employees acknowledge and agree that they have no expectation of privacy or confidentiality in their use of these systems or in any data that they create, store, or transmit over the systems, including any data created, stored or transmitted during an employee's incidental personal use of the Technology Resources as permitted under this policy. Employees also acknowledge that any data, they create, store or transmit from/to or within city systems to include electronic and physical is the sole property of the City and not individuals. Employees further agree that they are aware of,understand and will comply with the provisions of this policy, and that their use of the Technology Resources can and will be monitored and any data that they create, store or transmit on or over City systems may be inspected by City management at any time. Employees should understand that certain email messages, other electronic communications, and documents created on City computer systems may be considered a public record subject to disclosure and/or subject to discovery in the event of litigation. Standardized Software and Hardware The City has established software and hardware standards for commonly used applications. The use of unauthorized, non-standard software or hardware, including personally owned software or hardware, on city computer systems without written approval by IT staff and authorized by the Chief Financial Officer, is prohibited. Installation of Software and Hardware All software and hardware is to be installed by the IT Division. Specialized software and hardware technologies exclusive to individual departments may be managed within the appropriate department,in coordination with and approval of the IT Division. Any moving, relocating, or rearranging of computer software or hardware will also be coordinated and scheduled with the IT Division upon completion of the Employee and Equipment Move Worksheet. Ownership and Confidentiality All software, programs, applications, data, data files and web pages residing on City systems 1 - 14 or storage media, developed on City computer systems are property of the City. The City retains the right to access, copy, modify, destroy or delete this property. Data files containing confidential or sensitive data should be treated accordingly and should not be removed from the workplace without proper authorization. This includes, but is not limited to: • Certain employee records including those relating to or containing financial, medical or personal information; • Legal documents including but not limited to those relating to property transactions, litigation or claims against the City; • Banking and financial information including but not limited to transactions, credit cards, customer passwords, etc. Incidental, De Minimus Personal Use Incidental, de minimus personal use may be permitted where, in the judgment of the employee's supervisor or department director, such use does not interfere with employee or department productivity, nor distract or take time away from the worker or co-workers assigned work. Generally speaking, incidental, de minimus personal use means: • It is done on an employee's personal time, such as on a lunch break; • It does not interfere with job responsibilities; • It does not result in any expense to the City; • It does not solicit for or promote commercial ventures; • It does not utilize excessive network resources; • It does not constitute any prohibited use, as discussed below. Prohibited Use of City's Technology Resources Use of the City's Technology Resources to engage in any communication that violates federal, state, or local laws or regulations, or any City policy, is strictly prohibited at all times. In addition, the following uses of the City's Technology Resources are inappropriate and are prohibited at all times, unless specifically exempted below: • Personal commercial use (benefitting an employee's outside employment or commercial business); • Accessing, receiving or sending pornographic, sexually explicit or indecent materials of an unreasonably offensive nature; • Usage for any type of unlawful harassment or discrimination, including the transmission of obscene or harassing messages to any individual or group because of their sex,race,religion, sexual orientation,national origin, age, disability or other protected status; • Gambling; • The loading of computer games; • Usage that precludes or hampers City network performance such as streaming video or audio and playing MP3 files or online games, unless for City business. 1 - 15 • Unauthorized copying or downloading of copyrighted material; • Usage that violates software license agreements; • Downloading of software programs (unless specifically approved by applicable Department Director and coordinated with the IT Division); • Usage for political purposes, including partisan campaigning; • Sending anonymous messages and/or misrepresenting an employee's name, position, or job description; • Deliberately propagating any virus, worm, malware, spyware, or other code or file designed to disrupt, disable,impair, or otherwise harm either the City's networks or systems, or those of any other individual or entity; • Releasing misleading, distorted, untrue or confidential materials regarding City business, views or actions; • Using abusive, profane, threatening, racist, sexist, or otherwise objectionable language in either public or private messages; • Use of Technology Resources in an excessive manner so as to deprive others of system use or resources, including the sending of bulk email for other than official business or forwarding "chain letter" emails of any kind; • Connecting to the City network, or any specific software package, utilizing somebody else's security identification login information to gain alternate security permissions. The preceding list does not address all prohibited uses, but merely covers common examples. Any employee who violates these policies could be subject to disciplinary action, up to and including termination. In addition, employees may be held personally liable for damages incurred as a result of copyright and licensing requirements. Downloading Files from the Internet or Opening Email Attachments Downloading files from the internet or opening email attachments from sources outside the City can lead to spyware and/or virus attacks that can severely damage or degrade the City's network and/or data. The IT Division has installed anti-virus and anti-spyware software on all City computers and continuously updates signature definition files. However, that does not guarantee that all spyware is blocked, or that all viruses are caught. If you are downloading a file and receive a message that a virus or spyware has been detected, you must contact the IT Division immediately for assistance. Similarly if you receive an email with a suspicious attachment, or from an unusual source, you should notify the IT Division before opening it. If you notice that your computer is behaving strangely or you suspect spyware or a virus, notify the IT Division. Social Media and Social Networking: The City does not authorize the use of social media and social networking websites, except in 1 - 16 very limited and specifically authorized applications. I.e. as defined as City business. At no time are personal social media and social networking websites use authorized in any form or transmission during work hours. Security The IT Division must authorize all access to central computer systems. Each user is responsible for establishing and maintaining a password that meets City requirements as prescribed by current SANS guidelines. Passwords must: • Be changed every 90 days, • Have a minimum length of 8 characters, • Be complex. Passwords should use three of the following four types of characters: • Lowercase • Uppercase • Numbers • Special characters such as: !@#$%^&*O Passwords should not be easy to guess, or use items on your desk, and not contain your: • Name, • Username, • Nickname, • Family member names Or other similar type of easily accessible items or names that can be cross referenced by outside individuals using social media and its data contained.Pet's name • Social Security Number, • Birthday, • License plate number, • Address, • Phone number. Passwords should not be shared with anyone either verbally or via email (except IT) or documented in a manner that is easily accessed by others-or sent through email- The use of another person's passwords or attempt to capture other users' passwords is prohihited. In the event another employee's password is deemed necessary, as determined by the department director, a request shall he made to IT in writing to document the reason and IT staff will determine the appropriate method to assist the requesting party, in order to maintain proper security. 1 - 17 Network Access and Usage The IT Division must approve connecting devices to the City's network. This includes PCs, network hubs and switches,printers, handhelds, scanners, remote connections, and wireless or wired devices. Non-employees (e.g. vendors, contractors) are prohibited from connecting to the City's network without prior approval by IT Division and are required to have their PCs, laptops, etc. scanned by IT for virus detection prior to connecting Additionally, any vendor/contractor will also have industry software supported software and operating system which is not end-of-life and maintained regularly with security updates. Failure to do so will result in non-connectivity of both physical and remote access till resolved. Representatives of the contracting departments are responsible for assisting their contractors to engage IT to perform these services. Removable Computer Media Personal removable computer media, i.e. USB hard drives, flash/thumb drives, CDs/DVDs, laptops, cell phones and similar devices may not be loaded or attached to any City- owned equipment without authorization by IT. Electronic Document Management Users must manage their electronic documents in accordance with record retention policies and procedures as defined and identified by RCW 40.14 - Retention Periods. http://apps.leg.wa.gov/RCW/dispo.aspx?cite=40.14 Documents past their retention schedules should be deleted from the network to save space and eliminate the need to backup unnecessary files. Examples of electronic documents include, but are not limited to: • files • email • web pages Remote Access Employees may access the City's hosted email system at-http://mail.office365.com. There are a limited number of laptops projectors available for employees to check out for business-related travel or projects. These must be returned to IT immediately upon returning, and before being connected to the City's network. Access to the City's network for vendors and contractors via VPN (virtual private network) requires written approval from the Department Head and IT. VPN accounts will be audited, and inactive accounts will be deactivated. Reactivation of intermittently used VPN accounts for vendor support purposes will be accommodated upon request and approval by IT Division. Remote Virtual Desktop access requires permissions to use, with certain restrictions, and work hours for remote work etc. Contact IT staff for more information. 1 - 18 City Phone System Consistent with these guidelines, employees are not permitted to make excessive or extended personal telephone calls on City telephones. City-Provided Cellular Telephones Based on the particular duties of an employee's position, the City may determine that it is in the City's interest that an employee has a cellular telephone. Purchasing of Information Technology Hardware and Software Purchases of technology for City use must be coordinated through the IT Division. This policy applies to all computing and network-related resources of the City of Port Angeles, whether located in the City or in remote locations or facilities. The City's technical resources include but are not necessarily limited to: • Desktops, laptops, tablets and servers; • Software running on these devices; • Peripheral equipment (e.g. printers, scanners, cameras, etc.); • Cabling or connectivity-related devices; • Audio-visual equipment such as projectors. Non-Standard Office Productivity Software Non-standard software will not be supported by the IT Division. Requests for nonstandard software must be approved by the department head and the IT Division. Before purchasing non-standard software, the purchaser must describe the source of support for the software being purchased Prior to installation/activation, IT Staff will be provided sufficient time for testing and configuration management processes If for any reason the non-standard software interferes with any regular production software configurations, operations or networking resources such as copiers, scanners or other software, this software will be deemed detrimental to City IT Resources and will be removed. The department affected can if desired, can have this software loaded on a standalone system with no outside connections or communications. At no time will IT staff strive to make non-standard software which has been deemed detrimental, to reprogram, reconfigure or use staff resources to make it interface cleanly with any city resources that have or have not been previously affected. 1 - 19 Standard Office Productivity Software Standards for office productivity software are defined for the City and re-evaluated periodically. Office productivity software includes such packages as • Microsoft Office Suite, i.e. Word, Excel, Access, Outlook, SunGard • SunGard • Adobe Acrobat Reader • Adobe Flash Player • Adobe Shockwave • Java Application Software: Application software is software that fulfills a specific business purpose. Examples of application software are Adobe Professional, ArcGIS, Spillman, NetMotion, PastPerfect, WorkFlows, B1ueZone, Envisionware, Overdrive, WonderWare, AutoCAD, Photoshop, InDesign, Illustrator, etc. All application software packages must be evaluated and approved by the IT Division before purchase. Before an application software package is purchased, agreement must be reached between the vendor, purchaser and the IT Division in regard to the operating environment of and support for the application. If application software is to be supported by the IT Division the package must fit within the City's standard operating environment. Application software will be evaluated based on: • The nature of the application; • Its usage base; • The support requirements associated with the package; • Its criticality to the mission of the department or the City of Port Angeles as a whole; • It's fit within the City environment, i.e. operating hardware requirements, database management system, operating system requirements, and Web environment requirements. Non-Standard Hardware Non-standard hardware will not be supported by the IT Division. If a hardware component is not listed as a current standard below, it is considered to be nonstandard. Requests for non-standard hardware must be approved by the department head and IT Division. Before purchasing non-standard hardware, the purchaser must describe the source of support for the hardware being purchased. Hardware Standards Standards have been defined for workstation hardware, peripherals and servers. These standards are re-evaluated periodically based on common needs, vendor offerings, cost, reliability, supportability, and quality and timeliness of vendor support. 1 - 20 I have read and understand my responsibilities in adhering to the City of Port Angeles computer and information technology policies. I further understand that violations of this policy may result in discipline up to and including termination. Signature for employee and date. 2.17 REPORTING IMPROPER GOVERNMENTAL ACTION AND PROTECTING EMPLOYEES AGAINST RETALIATION The Washington State Local Government Whistleblower Act is intended to protect local government employees who raise issues of improper governmental actions with their supervisors and with appropriate governmental agencies (RCW 42.41). There are many federal and state law whistleblower statutory schemes, with the common theme that adverse employment action may not be taken against employees (1) who in good faith reports illegal or unlawful conduct to a person in authority or to the media, where the adverse action is taken (2) because the employee reported the illegal or unlawful conduct. The City of Port Angeles respects the rights of reporting employees and has adopted this policy to ensure compliance with the law. It is unlawful for a local government to take retaliatory action because an employee, in good faith and in conformance with the local government's procedures, provides information that improper governmental action may have occurred. A. POLICY STATEMENT It is the policy of the City of Port Angeles (1) to encourage reporting by its employees of improper governmental action taken by the City of Port Angeles officers or employees and (2) to protect the City of Port Angeles employees who have reported improper governmental actions in accordance with the City of Port Angeles'policies and procedures. B. DEFINITIONS As used in this policy, the following terms shall have the meanings indicated: "Improper governmental action" means any action by aCity of Port Angeles officer or employee: a. That is undertaken in the performance of the officer's or employee's official duties, whether or not the action is within the scope of the employee's employment; and b. That (i) is in violation of federal, state, or local law or rule, (ii) is an abuse of 1 - 21 authority, (iii) is of substantial and specific danger to the public health or safety or (iv) is a gross waste of public funds. C. "Improper governmental action" does not include personnel actions, including employee grievances, complaints, appointments, promotions, transfers, assignments, reassignments, reinstatements, restorations, reemployment, performance evaluations, reductions in pay, dismissals, suspensions, demotions,violations of collective bargaining or civil service laws, alleged violations of labor agreements, reprimands, discrimination claims or other lawful disciplinary action. "Retaliatory action"means any materially adverse change in the terms and conditions of a City of Port Angeles employee's employment made because the employee in good faith reported illegal or unlawful conduct. C. PROCEDURES FOR REPORTING The City of Port Angeles employees who become aware of improper governmental actions should raise the issue first with their supervisor. The employee shall submit a written report to the supervisor, or to some person designated by the supervisor, stating in detail the basis for the employee's belief that an improper governmental action has occurred. Where the employee reasonably believes the improper governmental action involves his or her supervisor, the employee may raise the issue directly in a written report with the City Manager or such other person as may be designated by the City Manager to receive reports of improper governmental action. In the case of an "emergency", where the employee believes that damage to persons or property may result if action is not taken immediately, the employee may report the improper governmental action directly to the appropriate government agency with responsibility for investigating the improper action. "Emergency"means a circumstance that if not immediately changed may cause damage to persons or property. The supervisor, the City Manager, or the City Manager's designee, as the case may be, shall take prompt action to assist the City of Port Angeles, working with the City Attorney, in properly investigating the report of improper governmental action. The City of Port Angeles' officers and employees involved in the investigation shall keep the identity of reporting employees confidential to the extent possible under law, unless the employee authorizes the disclosure of his or her identity in writing. After an investigation has been completed, the employee reporting the improper governmental action shall be advised of a summary of the results of the investigation, except that personnel actions taken as a result of the investigation may be kept confidential. Public Disclosure law applies regarding any statutory exemptions The City of Port Angeles employees may report information about improper governmental 1 - 22 action directly to the appropriate government agency with responsibility for investigating the improper action if the City of Port Angeles employee reasonably believes that an adequate investigation was not undertaken by the City of Port Angeles to determine whether an improper governmental action occurred, that insufficient action has been taken by the City of Port Angeles to address the improper governmental action, or that for other reasons the improper governmental action is likely to recur. City of Port Angeles employees who fail to make a good-faith attempt to follow the City of Port Angeles' procedures in reporting improper governmental action shall not receive the protection provided by the City of Port Angeles in these procedures. D. PROTECTION AGAINST RETALIATION AGAINST WHISTLEBLOWER City of Port Angeles officials and employees are prohibited from taking retaliatory action against a City of Port Angeles employee because he or she has in good faith reported an improper governmental action in accordance with these policies and procedures. Employees who believe that they have been retaliated against for reporting an improper governmental action should advise the City of Port Angeles Manager or the City of Port Angeles Manager's designee. The City of Port Angeles employees shall provide a copy of their written charge to the City of Port Angeles Manager no later than thirty (30) days after the occurrence of the alleged retaliatory action. The City of Port Angeles officials shall work with the City Attorney to take appropriate action to investigate and address complaints of retaliation. The City of Port Angeles Manager shall respond within thirty (30) days to the charge of retaliatory action. Aternatively, if the retaliation is alleged to involve the City Manager, , the City of Port Angeles employee may obtain protection under this policy and pursuant to state law by providing a written notice of the charge to the City of Port Angeles City Council no later than thirty days after the occurrence of the alleged retaliatory action that: a. Specifies the alleged retaliatory action; and b. Specifies the relief requested. The City of Port Angeles shall respond within thirty (30) days to the charge of retaliatory action. After receiving either the response of the City of Port Angeles or thirty days after the delivery of the charge to the City of Port Angeles, the City of Port Angeles employee may request a hearing before a state administrative law judge (ALJ) to establish that a retaliatory action occurred and to obtain appropriate relief provided by law. An employee seeking a hearing should deliver the request for hearing to the City of Port Angeles Managerwithin the earlier of either fifteen (15)days of delivery by the City of Port Angeles' response to the charge of retaliatory action, or forty-five (45) days of delivery of the charge of retaliation to the City of Port Angeles for response. Upon receipt of request for hearing, the City of Port Angeles shall apply within five (5) 1 - 23 working days to the State Office of Administrative hearings for an adjudicative proceeding before an administrative law judge (RCW 34.05.410 — 598): Office of Administrative Hearings Lacey, WA 98504-2488 P.O. Box 42488, 4224 Sixth S.E. (206) 459-6353 Rowe Six, Bldg. 1 The ALJ process and remedies provides the exclusive remedy forthe reporting employee. (RCW 42.41.040). The City of Port Angeles will consider any recommendation provided by the administrative law judge that the retaliator be suspended with or without pay, or dismissed. E. RESPONSIBILITIES The Human Resources Manager, designated by the City Manager and working with the City Attorney, is responsible for implementing these policies; (1) for reporting improper governmental action and (2) for protecting employees against retaliatory actions. This includes ensuring that this policy and these procedures (1) are permanently posted where all employees will have reasonable access to them, (2) are made available to any employee upon request and (3) are provided to all newly hired employees. Officers, managers and supervisors are responsible for ensuring the procedures are fully implemented within their areas of responsibility. Violations of this policy and these procedures may result in appropriate disciplinary action, up to and including dismissal. In orderto ensure reporting options for the employee, the City Manager's designee will be: (1) Human Resources Manager, or the (2) City Attorney/Senior Assistant City Attorney. List of Agencies. Following is a list of agencies responsible for enforcing federal, state, and local laws and investigating other issues involving improper governmental action. Employees having questions about these agencies or the procedures for reporting improper governmental action are encouraged to contact the General Manager. The contact information (addresses and phone numbers) for the agencies listed below can be found on the internet. CLALLAM COUNTY Clallam County Prosecuting Attorney Clallam County Court House 223 East Fourth Street Port Angeles, WA 98362 (360) 452-7831 STATE OF WASHINGTON Attorney General's Office Fair Practices Division 1 - 24 State Auditor's Office Human Rights Commission State Department of Health Health Consumer Assistance Department of Labor & Industries Puget Sound Water Quality Authority Department of Social and Health Services Special Investigation Office UNITED STATES U. S. Attorney Consumer Product Safety Commission Environmental Protection Agency Criminal Investigations Equal Employment Opportunity Commission 2.18 PURCHASE OF SURPLUS PROPERTY AND EQUIPMENT Employees may participate in bidding for surplus City equipment and/or property, provided no special privileges or conflict of interest arises from such action. A conflict of interest for the purposes of this Section is defined by Chapter 42.23 RCW, A Code of Ethics for Municipal Officers - contract Interests. The following employees may not participate in bidding for or purchase of surplus property/equipment: (1) City Council members; (2) City Manager; (3) Department Directors and (4) an employee responsible for surplusing and sale of the property and/or equipment. 1 - 25 Employees electing to bid on or purchase surplus property/equipment for which no conflict of interest arises shall participate in the sale process stipulated by City Council. In addition, such employee shall declare his/her interest in participating in the bidding process to his/her Department Director and City Attorney in advance, or as soon as possible after the public notice of sale is released. 2.19 CITY SPONSORED ACTIVITIES AND PROGRAMS FOR EMPLOYEES The City endeavors to create a harmonious and productive work environment including effective and timely communication for employees. To this end, the City sponsors certain activities and programs such as periodic , safety recognition events, wellness program events and activities, annual awards luncheons, and other similar employee recognitions. . The City Council authorizes the City Manager to provide necessary funding for these employee programs. However, funding is limited to budgetary constraints. 2.20 CITY OWNED CELLULAR PHONES The acquisition and use of cellular phones by City departments shall be in accordance with this policy. The purpose of this policy is to ensure cellular phones are used in the most expeditious manner and to provide guidelines in the acquisition and use of such equipment. The purchase and/or installation of cellular phones shall be approved by the Department Director. Any purchases or installation of cell phones shall be coordinated through the Finance Department, Information Technology Section. This is to insure consistency in the application and use of cell phones and purchasing. . It shall be the responsibility of the Director to ensure that sufficient funds are budgeted for the purchase and monthly operational costs associated with such equipment prior to its use. Cellular phones owned by the City shall be used only for authorized City business as determined by this policy and the individual employee'sjob requirements. The general use of cellular phones shall not be in lieu of more cost effective, practical and available means of communication. City cell phones may be used for personal reasons on a limited basis In such event, the employee shall reimburse the City for the cellular phone charge incurred. It is the responsibility of the Department Director or his/her designee to review each months cell phone billings to ensure proper use of this equipment. 2.21 CITY LOCKERS The City may furnish lockers for employees for security of employee and City possessions. The City does not assume responsibility for any theft or damage to the personal belongings of employees, and the City reserves the right to search these lockers at any time. 2.22 INCLEMENT WEATHER POLICY Curtailing Services and Closing Facilities: In the event of an emergency or during severe 1 - 26 weather conditions, as declared by the City Manager, certain City services and/or facilities maybe closed or services curtailed. Under such emergency or severe weather conditions, only primary services, as determined by the Department Director and City Manager, shall be provided, i.e., electric services and Public Works activities such as water, sewer, street maintenance, and garbage collection. The City will make reasonable efforts to notify affected employees that a facility will be closed,.. Administering Pay: Should conditions prevail which would prohibit City employees from reporting to work the following shall apply relative to the administration of pay for affected employees: Normal Situation: Employees who are scheduled to work and report to work shall receive their normal rate of pay for the hours worked. Leave Work Early: If an employee is authorized by his/her supervisor to leave work before the designated shift ends, because of weather conditions and safety, such time will be charged to first accrued comp time and then accrued vacation or leave without pay. Sick leave cannot be used to leave early, if unable to report to work, or city facilities are closed. Unable to Report: Employees who are scheduled to work but are unable to report to work because of the weather conditions shall charge such time to first accrued comp time and then accrued vacation or leave without pay. It will be the responsibility of the employee to contact his/her supervisor or by telephone or email if the employee is scheduled but is unable to report for work during the emergency or inclement weather conditions. City Facility Closed: Employees who are scheduled to work but are unable to report to work because the City facility is closed shall charge time to first accrued comp time and then accrued vacation or leave without pay. Employees on Leave: Employees who are scheduled to be on paid leave, such as vacation, comp time, or holidays, shall have such time charged to the leave allotments as originally scheduled. 1 - 27 CHAPTER 3 — EMPLOYMENT RELATED POLICIES 3.00 NOTIFICATION OF VACANCIES When a vacant position occurs in a Department, the Department Directorwill notify Human Resources by e-mail or memo of the vacancy, and will designate a contact person in the Department with whom Human Resources will coordinate the recruitment and selection activity. In working with the Department, Human Resources will assist in determining the necessary recruitment period, develop the recruitment process and placejob ads, screen applications, test qualified applicants, and monitor the selection process for compliance with lawful requirements. H.R. will also assist the Department with the appropriate pre-employment procedures, such as medical examination, reference checks, psychological evaluations, and employee orientation once the hiring decision is made by the Department Director.. 3.01 CITY APPLICATIONS All Departments use the City of Port Angeles Employment Application as approved by Human Resources when recruiting for vacancies. This is to ensure uniformity and compliance with applicable Federal/State requirements relative to the selection process. 3.02 PROBATIONARY STATUS OF NEW EMPLOYEES Except as otherwise determined by the City Manager, all newly hired regular full-time or regular part-time employees are hired for a probationary period of six (6) months (twelve months for law enforcement and Fire Department positions). The Department Managers use this probationary period as an extension of the selection process to evaluate the employee's work performance. Each employee receives a performance evaluation during the probationary period, generally at three (3) and six (6) month intervals, or more frequently, as determined by the Department Director.. Probationers may be terminated during this period at any time, with or without cause, and without right of appeal. Probationary periods cannot be extended, except in the instance of an employee on an extended leave of absence, so that the Department has the full term of the probationary period to evaluate the employee. 3.03 VERIFICATION OF LAWFUL EMPLOYMENT IN THE U.S.A. Federal law requires the employer to ensure that newly hired employees are lawfully employable in the United States. Failure to do so is punishable by fines and/or imprisonment. To comply with this requirement, the hiring manager or Human Resources must review the employee's driver's license and Social Security card other proof of identification allowable under the law and complete an I-9 form no Iaterthan the third day of work, and return it to Human Resources. Check with the Human Resources Office for other identification. 1 - 28 3.04 PRE-EMPLOYMENT PROCEDURES Applicants who have received a conditional offer of employment may be required to complete a pre-employment medical examination scheduled by Human Resources priorto employment. Human Resources will coordinate the examination with the Department and the potential new hire. Failure of the candidate to pass the pre-employment medical (plus polygraph and psychological evaluations for law enforcement positions) or other required procedures will result in disqualification from employment. Additional pre-employment procedures include H.R. conducting employment references. 3.05 STARTING SALARY FOR NEW EMPLOYEES (Excluding City Manager and Department Directors.). The Department Director may start a new employee within the current salary range up to midpoint of the range. If the Directorwishes to start the employee at a higher step, such a request must be approved by the Human Resources Manager and the City Manager prior to offering the salary to the new employee. Any other terms and conditions offered to an employee must be approved by the City Manager; this includes up-front paid leave, travel or relocation expenses, or any other form of employment conditions. 3.06 NEW EMPLOYEE ORIENTATION The Department Manager or Supervisor will make arrangements with the Human Resources Office for employee orientation within the first week of employment for the new employee. The orientation will include a checklist of items covered with the employee's signature when such orientation is completed. A copy of the checklist will be placed in the employee's personnel file. Any orientation relative to specific Department concerns is the responsibility of the respective Department Manager or Supervisor and will include specific department procedures, safety rules/regulations, policies,work schedules, mission orvalue statements, and other employment practices related to the work in the department. . 3.07 PERFORMANCE EVALUATIONS Performance evaluations are recognized as an integral part of a supervisor's responsibilities toward effective employer-employee relations. To this end, an employee should receive his/her performance evaluation in a timely manner. The completed performance evaluation becomes part of the employee's permanent record. New Hires: Performance evaluations will be completed at three (3) month, and at six (6) month intervals. For Police and Fire classifications, such evaluations will be completed at three (3) month, six (6) month, and twelve (12) month intervals. More frequent evaluations may be conducted at the discretion of the Department Director or appropriate Manager Annual Review: Each employee receives an annual performance evaluation which shall be within the first quarter of the year. The Department Director selects the month in which all employees of that department will have their annual reviews. Merit salary increases, if given, shall be effective (advancement through the steps of the salary range) on the 1 - 29 employees anniversary date. Special Evaluations: A Manager or supervisor may conduct a special performance evaluation at any time to evaluate the employee's job performance over a given period. Such evaluations may be used relative to a specific problem, which needs to be corrected within a certain time period or establish a performance improvement plan (PIP). 3.08 HIRING OF FORMER EMPLOYEES Employees who have resigned theiremployment in good standing and who the Department Director is willing to rehire, or who are on a valid layoff list for re-employment, may be eligible for rehire. If such an employee is rehired in his/her former classification within one (1) year from the date of separation, the employee may be credited for his/her previous work time only for purposes of determining his/her wage. Such wage determination is subject to review by the Human Resources Manager and approval by the Department Director and City Manager. 3.09 ADJUSTMENT OF HIRE DATE For purpose of calculating seniority, leaves of absence with out pay extending more than 30 days shall not be credited toward total time of employment. An employee, who is on a leave of absence without pay from City service for a period of thirty(30)days or more, shall have his/her City anniversary date (for City seniority)adjusted for the period of such leave. 3.10 PERSONNEL RECORDS Personnel records are maintained in the Human Resources Office and are property of the City. The records include, but are not limited to, the employee's application, a record of all personnel actions affecting the employee such as pay changes, promotions, title changes, leaves of absences, transfers, accidents, disciplinary actions, and other related information. It is the responsibility of employees to inform Human Resources if they move, change their telephone number or experience other changes in their personal information. In this way, personnel records will remain accurate and up-to-date. An employee's record is confidential to the extent allowable by law. The employee's union or legal representative may have access to the employee's file upon written authorization by the employee, with a copy of such authorization placed in the file. The personnel file may also be obtained by a valid court order, or through a Public Disclosure Act request, subject to applicable exemptions under law. The City reserves the right, as provided for by City Ordinance, to charge a copy fee for providing copies of such information from the file. If the employee is disciplined, resulting in documentation being placed in his/her personnel file, the employee may submit a rebuttal to the information. The employee may review his/her personnel file and obtain a copy of any information so contained with advance notice to Human Resources. 3.11 OTHER EMPLOYMENT If an employee obtains employment in addition to his/her City job, the employee shall provide written notice to the Department Head. Such notice from the Department Director 1 - 30 shall be placed in the employee's personnel file. Outside employment that results in a conflict of interest with City employment, or that interferes with the employee's work performance, as determined by the Department Director and subsequent verification by the City Attorney, will be prohibited. Advance notice and review for compliance with this policy is required. 3.12 TEMPORARY MODIFIED or "Light Duty" 1. Working employees are the City's most valuable resource. There may be times when a Department has specifictasks orassignments of a limited duration (Modified "light duty" Assignments) that can be performed by employees who temporarily cannot perform the essential functions of their position due to illness, injury or pregnancy. 2. The City may offer an employee who becomes sick, injured or pregnant a modified duty assignment consistent with the needs and operations of the City as determined by the Department Director working with Human Resources. 3. Modified duty is a short term work assignment for employees who have temporary medical restrictions precluding them from performing one or more essential job functions. Modified duty is intended to transition the employee from the injury / illness, medical restrictions to the return to full duty. 5. The Department Director in conjunction with Human Resources will have the sole discretion to create, maintain oreliminate modified duty assignments consistentwith this policy and applicable law. Requests for light duty for temporary disabilities should be addressed with the City Attorney under disability law related to reasonable accommodation. Eligibility for Modified Duty Status: Employees may be eligible for modified duty status when: a. The employee has an illness/ injury/medical restriction which prevents them from working in their regular assignment. b. The employee's health care provider releases the employee to perform employer determined available specific tasks or projects, and C. The employee obtains a written medical prognosis of return to full duty with or without accommodation by the City. Length and Limitations of Modified Duty Assignment: a. The employer shall have the discretion to determine the length of the modified duty assignment consistent with medical restrictions, availability of 1 - 31 work, and operational needs. Modified duty assignments shall be subject to continuous re-assessment dependant on department need and the employee's ability to satisfactorily perform in this temporary capacity. b. If an employee cannot adequately perform in a modified duty assignment, if the department need no longer exists, or there is a change in organizational priorities, such assignment may be modified or revoked. Requesting Modified Duty Assignment: The employee shall: a. Make a written request for a modified duty assignment or extension of modified duty assignment to his/her immediate supervisor who will forward the request to the Human Resources and the Department Director. b. Complete all required Human Resources documents before being placed in a modified duty assignment. C. Obtain a health care provider certification that- 1. Releases the employee to work in the modified duty assignment. 2. Lists all restrictions and conditions for work; and, 3. States the medical prognosis/expectation for when the employee will be able to perform the essential functions of his/her regular position. See return to work discussion for Workers Compensation issues, Policy Sec. 8.02. 1 - 32 CHAPTER 4 - PERSONNEL ACTIONS 4.00 PERSONNEL ACTION FORMS A personnel action form shall be initiated by the employee's manager. A PAF is processed for , new hires, promotions, demotions, changes in compensation, leaves of absence, title changes, reclassifications, transfers, terminations, resignations or any other personnel action affecting employment status, compensation or benefits. It is the responsibility of the manager to see that the PAF is fully completed, process in advance with sufficient time to circulate to all parties for signatures and payroll implementation. 4.01 RESIGNATION IN GOOD STANDING An employee who leaves City service shall ordinarily provide a written resignation to the employee's Manager with a minimum of two (2) weeks advance notice in order to allow a reasonable transition of City operations. Resignations with less than this notice shall be deemed resignations not in good standing,.. 4.02 RECLASSIFICATION (Excluding City Manager and Department Directors ). Because of changes in service demands, job requirements, assigned duties and responsibilities, technology, or other reasons, a position may be reclassified. Such changes in a job require a classification review conducted by Human Resources , which may affect the wages of the class (increase or decrease), change in qualifications, or amending of the job description. A request for a classification review may only be initiated by a Department Director, , the City Manager, or Human Resources. A Department Director may initiate a request for a classification review for a newly created position or for an existing position, if the duties/responsibilities have significantly changed. A classification review will not be undertaken solely to support a pay increase. Any request for a classification review shall be in writing to Human Resources, with a copy to the City Manager. Any reclassification is subject to appropriate funding within the respective Department. If the classification review results in an up-grade of the salary range, the incumbent shall be placed within the new range at the step nearest his/her present salary, but not lower. If the classification review results in a downgrade of the position and if a represented position, the City will bargain the impact of the reclassification with the union, based on the scope of responsibility and assigned duties. If a management or non-represented position, the Department Director and Human Resources will determine the appropriate salary level, subject to approval of the City Manager. Downward reclassifications shall not be considered a demotion. A classification review must be conducted in conjunction with the budget process. A classification study shall be submitted to Human Resources by July in order for the review process to be conducted and appropriate funding changes included in the next years budget process. Mid-Year classification studies may be conducted but shall not be effective without funding allocated within the department. 1 - 33 4.03 LAY-OFF PROCEDURES (Excluding City Manager, Department Heads, and Police and Fire classifications under authority of Civil Service). The City may lay off employees where there are changes in service levels, reorganization, a position is abolished, lack of funding, or other appropriate reason requiring a reduction in the workforce as determined by the City. The City shall make efforts to keep such lay-offs to a minimum by attrition or integrating affected employees into other positions. An employee laid off shall receive a minimum of 30 days written notice priorto the effective date of the lay-off. Employees having rights to layoff procedures include regular full-time and regular part-time. Seasonal, and on-call, employees or temporary employees do not have rights to the layoff procedures or re-employment rights. Lay-off will generally be in inverse order of hire by classification within each Department. However, in considering which employees are laid off, the City shall retain the most qualified and job performance shall be a factor in such retention. If the City needs a particular skill, the City maintains the right to retain such an employee. Qualifications will be determined by the knowledge, abilities and skills for the classification. "Bumping procedures" shall apply to classification seniority for positions holding prior status in a lower class within an occupational series. Such procedures are defined as employment status held in a lower classification within the same occupational series; i.e., a Utility worker may be "bumped" by a Ieadworker with greater seniority and who has held status in the lower classification. Lay-Off List For a period of eighteen (18) months from the date of lay-off, regular full-time employees who were laid off,followed by regular part-time employees, shall have re-employment rights to a position in the classification they held prior to such lay-off and shall have first opportunity to fill a position when one becomes available. An employee re-hired from the lay-off list shall be placed at the salary range and step held by the employee prior to being laid off. However, the salary schedule shall be the rate of pay at the time of re- employment. It shall be the responsibility of the laid off employee to keep his address current with the City. If a position becomes available, the City will notice the employee at the last address of record. If the employee fails to respond to the notice within ten (10) calendar days, the employee's name will be removed from the lay-off list for future consideration, unless a valid reason exists, as determined by the City, for such failure to respond. 4.04 RETIREMENT Employees covered by the Public Employees Retirement System (PERS I, II or III) or the Law Enforcement Officers and Firefighters Retirement System (LEOFF I or 11) wishing 1 - 34 information concerning retirement should contact the Department of Retirement Systems in Olympia, Washington. If an employee wishes to retire, the employee must send an application for retirement to the Retirement System Office at least ninety (90) days prior to his/her retirement effective date. The Department of Retirement Systems will provide the employee with the estimates of benefits due the retiring employee. An employee shall provide as much notice as possible to the affected Department Director prior to the retirement effective date, preferably six months notice. 4.05 SEPARATION OF EMPLOYMENT (Excluding the City Manager) Termination of employment shall be based on either (1) resignation by the employee, (2) disciplinary action of the employer for violation of rules, laws, regulations, or other reasons outlined in section 9 of these policies, the applicable employment contract or applicable labor contract, (3) retirement, (4) reduction in force by the employer, or (5) termination by the employer as otherwise provided by law.. or Whenever an employee's service with the City terminates, it is the responsibility of the Department Director or Division Manager to ensure that the Personnel Action Form is processed in a timely manner and that all City keys, cell phones, electronic communication devices, computers, and any other City property is returned. CHAPTER 5 - SALARY ADMINISTRATION 5.00 SALARY STRUCTURE Salaries for union represented employees are established through the collective bargaining process and adopted by the City Council. Salaries for Management, Confidential, and non- represented employees are established by the City Council. 5.01 SALARY STEPS Each classification has an established salary range that has either several steps or a flat rate and may be either hourly or monthly. An employee may advance in the salary range with annual progression through the steps based upon satisfactory performance as determined by management. Merit pay increases are not automatic based on length of service but are based on job performance. Salary changes are made by the Department submitting a Personnel Action Form, approved by Human Resources and the City Manager. 5.02 ELIGIBILITY FOR SALARY INCREASES Regular, full-time employees are eligible for a merit salary step increase annually , to the maximum of the established salary range. Regular part-time employees do not receive annual merit salary increases. Employees in these positions are eligible for a salary increase based upon the number of hours budgeted to work for their position, in relation to when full-time employee would be eligible for a salary increase (i.e., one-half or three-quarter time position). For example, a one-half time employee who works 1,040 hours/year (i.e., half time) is eligible for a salary increase upon completion of 2,080 authorized work hours, ortwo years. 1 - 35 In order for any step increases, to be effective, the employee must receive a satisfactory performance evaluation by the employee's supervisor, with approval by the Department Director and City Manager. Annual salary increases are not automatic and may be withheld in the event of unsatisfactory performance, excessive absenteeism, unsafe work record, because of disciplinary actions within the evaluation period, or as determined by the Department Director and substantiated through documentation. 5.03 PAYROLL DEDUCTIONS As required by law, the City deducts applicable payroll withholdings for Social Security, Federal taxes and Retirement. Other payroll deductions on a voluntary basis are provided forthrough payroll authorization procedures, such as union dues, deferred compensation, United Way, etc. 5.04 PAY DAYS The City issues a paycheck every other Friday on a bi-weekly basis. The paycheck covers the two-week(80-hour)work period ending Sunday before the payday. Employees are encouraged to participate in direct deposit of their bi-weekly paycheck. See Payroll or Human Resources for the paperwork to begin direct deposit. 5.05 OVERTIME (Non-Exempt Employee) Overtime hours for regular full-time employees are authorized hours worked in excess of eight(8) hours in a workday or forty(40) hours in a workweek. For Seasonal positions and regular part-time employees, the non-overtime workweek is 40 hours/week, regardless of the number of hours worked in any particular day. Refer to overtime provisions in the labor contracts for alternative work shifts when overtime is granted, such as 10,11, or 12 hour work shifts. Overtime compensation will be paid for authorized overtime hours worked at the rate of time and one-half the employee's regular rate of pay. Assignment of overtime hours is a management prerogative and is not voluntary. Employees may not work overtime without advanced supervisor's approval. Refer to the labor contracts for overtime pay for unionized employees; some overtime is paid at time and one-half and some at double time., depending on the terms of the labor contract. To be eligible for overtime , and employee must be in a classification designated as non- exempt per Fair Labor Standards Act(FLSA) requirements. Classes exempt from overtime include executive, professional, and certain administrative positions. The Human Resources Office maintains a list of exempt and non-exempt classes. 5.06 WORK ON A HOLIDAY (Excluding exempt employees) If a regular full-time employee (designated as non-exempt per FLSA)works on a scheduled holiday, the employee shall be paid the overtime rate for the shift and shall receive an in lieu holiday to be taken at a later date, subject to supervisory approval, or the City may pay in cash the equivalent; Regular part-time employees do not receive overtime for work on a holiday, unless they exceed forty (40) hours per workweek. 1 - 36 The regular part-time employee shall receive time off for the holiday based upon a pro- ration of their annual authorized work hours. I.e. A half-time employee will have 4 hours of holiday time for a recognized holiday. 5.07 HIGHER CLASSIFICATION PAY FOR NON-REPRESENTED EMPLOYEES (Excluding City Manager and Department Directors) The Department Director or Division Manager may assign an employee to work in a higher classification in the event of a position being temporarily vacant. Such assignment may be made if the position will be vacant for a minimum of one week or more. The premium pay shall be 5% of the employee's regular rate of pay. To qualify and be assigned higher class pay, the employee must be granted the responsibility and authority of the higher class, including making decisions within the normal scope of work. In the event a Department Director documents unusual circumstances for higher class assignment, such exceptions shall be submitted to the City Manager for variance to this policy. Higher class pay for unionized employees is governed by the appropriate labor contract. 5.08 COMPENSATORY TIME OFF (COMP TIME) (Non-Exempt Employees) If a Department HDirector elects to offer compensatory time off in lieu of cash for overtime hours worked, and an employee elects to take comp time in lieu of cash, the rate of earnings shall be one and one-half hours of comp time earned for each hour of overtime worked, computed to the nearest 15 minutes. The maximum number of hours of comp time accrued shall not exceed 80 hours.Overtime worked in excess of this amount shall be paid in cash. In the event of separation of City service, comp time hours accrued but not taken shall be paid in cash at the employee's rate of pay in the classification the employee holds regularstatus. Priorto a promotion, accrued comp time shall be taken off or paid in cash to eliminate this fiscal liability. Departments are responsible for recording comp time hours accrued and taken on the time card used for payroll. The record-keeping requirements are mandated by the Fair Labor Standards Act (FLSA). Employees wishing to schedule time off to use accrued comp time hours shall do so in advance with approval of their supervisor. CHAPTER 6 -ATTENDANCE AND HOURS OF WORK (Excludes City Manager and Department Directors ) 6.00 HOURS OF WORK The regularworkweek is 40 hours. The workday is generally 8 hours in a 24-hour period, as scheduled by the Department, with 5 consecutive days on and 2 consecutive days off. Each Department shall establish work schedules for employees that may vary and may include weekends. 1 - 37 6.01 ATTENDANCE Employees are expected to arrive at work in sufficient time, ready to work when the work shift begins. Punctual attendance is required. If an employee is going to be late for work, or absent from work, it is the employee's responsibility to notify his/her supervisor in advance of the situation. Each Department will establish attendance notification procedures for employees (i.e., minimum time for notifying supervisor of absence). Repeated tardiness is subject to disciplinary action. An employee absent from work without proper notification shall be subject to disciplinary action and if the absence continues for three (3) or more consecutive days or shifts, s/he shall be considered as having abandoned his/herjob and may be terminated, depending upon the circumstances of the employee's absence. 6.02 REST PERIODS & MEAL PERIODS Employees working 8- or 10 hour shifts shall be entitled to two (2) 15-minute rest periods; one during the first half of the shift, and one during the second half of an shift. Break times are scheduled by the supervisor per department/division needs so as not to interfere with City business and such breaks or meal periods shall not be accrued for use at a later time. Meal periods may be 30 or 60 minutes in length, as established by the Department work schedule and may be paid time or non-paid time, depending upon the employee's work schedule. If an employee works 5-hour or less a meal period is not provided. 6.03 REPORTING OF WORK HOURS Maintaining accurate time records relative to hours worked and leave time is required by law. Each employee is responsible for completing his/her time card and each supervisor is responsible for verifying such information prior to submittal for payroll purposes. Falsification of time records will be grounds for disciplinary action, up to and including termination. CHAPTER 7 - LEAVES OF ABSENCE 7.00 VACATION (Excluding City Manager and Department Directors) ) Vacation shall be earned and taken as provided for in Schedule C, for management and Non-Represented employees or the appropriate labor agreement. For unionized employees. Vacation may be taken, upon supervisory approval, after completing the first six (6) months of employment. Unused vacation credits shall be paid off in cash upon separation from City service Except during probationary periods for promotional positions, probationary employees do not accrue vacation and are not entitled to any vacation pay-off if they are terminated or resign during the probationary period. After reaching regular status, the employee is credited with the appropriate number of hours of vacation time. Regular part-time employees earn an amount pro-rated, based upon the number of authorized hours budgeted for the position. All vacation taken is subject to advanced supervisory approval. 1 - 38 All leaves described below shall run concurrently (at the same time) where allowed by law. Human Resources and the City Attorney should be conferred with on these leave issues where questions arise. Under state law, all registered domestic partners are treated the same as spouses with respect to all state family and medical leave laws, and with respect to any supplemental or additional leave programs offered by the City. RCW 26.60.020. This is not the case under federal law and related leaves. 7.01 SICK LEAVE (Excluding the City Manager and Department Heads) (See also Section 7.05, Family Leave) Sick leave is a benefit provided by the City to regular full-time and regular part-time employees. Abuse or improper use of sick leave is subject to disciplinary action. Sick leave is earned at the rate of eight (8) hours per month (3.69 hours bi-weekly) for all regular full-time employees. Regular part-time employees earn an amount prorated based upon the number of authorized hours budgeted for the position. (Fire shift employees refer to the labor contract.) Sick leave may be used,with advance approval of the employees Manager or supervisor , for illness or injury to the employee, to care for members of his/her immediate family who have serious or emergency illness, to care fora minor child who has an illness that requires treatment or supervision, to care for a child eighteen (18) years and older with disabilities, or for funeral leave. Use of sick leave for funeral leave is limited to three (3) days per incident unless additional time is approved by the Department Director . The definition of immediate family member for purposes of this policy is spouse, registered domestic partner, child, adopted child, foster children, step-child, parent (biological or adoptive), parent-in-law, grandparent, or child eighteen (18)years and olderwith disabilities. The City must allow an employee to use earned sick leave if these policy provisions are met. See Family Care Act (RCW 49.12.270) and Section 7.05 below. See Policy Sec. 8.02 for use of accrued sick leave with worker's compensation time-loss benefits. An employee may not be disciplined or threatened with discipline for properly using paid leave under this provision. (BRENDA — please review the definition of family members, probably missing something here) If a Department Director or supervisor has reason to believe an employee has used sick leave improperly, the employee may be required to show proof of illness/injury by verification from a physician. Such proof of illness may be requested for any suspected abuse or misuse of sick leave .. Ordinarily, if an employee has been absent from work due to employee's or permitted family member's illness or injury for three (3)consecutive days, 1 - 39 the Department Director will ask for medical verification of the need for sick leave. Prior to the Department Director or Supervisor requiring the employee to produce a doctor's statement relative to the illness or injury, Human Resources should be consulted for assistance. Employees may use sick leave for medical, dental, vision and other related health appointments, and should schedule such appointments to cause the least disruption as possible to the work. When possible, appointments should be scheduled on non-work time and before or after the work shift. Sick leave maybe used in 30-minute increments, and recorded on the employee's time card. 7.02 MILITARY LEAVE Military Deployment/Training Leave. Under state law, any employee of the City who is a member of the Washington national guard or of the army, navy, air force, coast guard, or marine corps reserve of the United States, or of any organized reserve or armed forces of the United States shall be entitled to be absent from his or her duties with the City with full pay for up to the equivalent of 21 regular(8 hour)work days each calendar year, beginning October 1 and ending the following September 30. Such leave shall be granted in order that the person may report for required military duty, training, or drills including those in the National Guard in such manner and at such time as he or she may be ordered to active duty or active training duty in accordance with RCW 38.40.060. Such military leave shall be in addition to any other accrued vacation or sick leave. The employee must provide documentation to the Department Director showing the orders to report for leave. Such employees must additionally be granted a military leave of absence without pay for service in the uniformed services of the United States or the state, and to reinstatement as provided in chapter; , , 1 6.1 RCW. See WAC 357-31-370. Upon application for reinstatement, the employee must provide a copy of his/her military discharge papers. Family Member Deployment Leave. During a period of military conflict, an employee who is the spouse or registered domestic partner (RDP) of a member of the armed forces of the United States, national guard, or reserves who has been notified of an impending call or order to active duty or has been deployed is entitled to a total of fifteen days of unpaid leave per deployment after the military spouse or RDP has been notified of an impending call or order to active duty and before deployment orwhen the military spouse or RDP is on leave from deployment. Such employee may elect to substitute any of the accrued leave available at the time of notice. Leave shall be enforced as provided in chapter 49.78 RCW. (State Family Leave Act). Such employee is entitled to restoration to a position of employment and to continue benefits in the same manner as an employee entitled to leave under chapter 49.78 RCW continues benefits. See RCW 49.77.030; 49.78.280-290. 1 - 40 Notice must be provided within five business days of receiving official notice of an impending call or order to active duty or of a leave from deployment, of the employee's intention to take leave. Military Exigency Leave: Under federal law, an employee may take up to 12 weeks of unpaid FMLA leave for "qualifying exigencies"that arise when the spouse, child or parent of an eligible employee is a member of the National Guard or Reserves and is on active duty or is called or ordered to active duty in support of a contingency operation. This also applies to any person in the regular armed services if the service member is called to active duty for service in a foreign country. This provision does not extend to family members of service members in the Regular Armed Forces. 29 CFR Part 825 provides the Final Rule for the 2010 military amendments, effective March 2013. US DOL provides guidance and basic provisions at dol.gov. See FMLA Sec. 7.05 below for description of eligibility requirements for FMLA leave. Under City policy, an employee must use accrued paid leave during FMLA leave and paid leave shall run concurrent with FMLA/FLA leave. 12 weeks remains the total amount of time an employee can take off for FMLA leave,whetherthe leave be fora military qualifying event or for a serious health condition. "Exigency" Leave is defined as: • Short-notice Deployment—where the covered military family member is notified of a deployment of 7 or less days, an eligible employee may take up to 7 days of leave for any reason to that deployment. The 7 days begins to run when the covered family member is provided the short-notice deployment • Military events— eligible employee may take leave to attend any official ceremony, program or event sponsored by the military, and to attend family support and assistance programs and information briefings sponsored by the military, military service organizations, or the American Red Cross. • Child care and school activities — eligible employee may take leave to arrange for child care or attend certain school functions of the son or daughter of a covered military family member, including leave to a.) arrange for alternative school or childcare; b.) provide childcare on an urgent, immediate need (not regular) basis; c.) enrollment or transfer of a child in a new school or day care facility; and d.) attend meetings with school or day care staff regarding discipline, parent-teacher conference, and school counselors. • Financial and legal arrangements—eligible employees are allowed leave to make or update financial or legal arrangements to address the covered military family member's absence while on active duty/call to active duty, such as preparing or executing a will, powers of attorney, transferring bank account signature authority, obtaining military identification cards, and securing military service benefits. Leave is not available for routine matters such as paying bills. 1 - 41 • Counseling — eligible employees may use leave to attend counseling by a non- health care provider. Leave is available where the counseling is needed by the employee, the covered military member, or the son or daughter of the covered military member needs counseling, provided that the counseling arises from active duty service or call to active duty. • Rest& Recuperation (R&R)—eligible employees may receive up to 5 days of leave to spend with a covered military family member on rest and recuperation leave during a period of deployment. • Post-deployment activities—eligible employees may use leave to attend ceremonies incident to the return of the covered military family member, including arrival ceremonies, reintegration briefings and events, and any other official ceremony or program sponsored by the military for a period of 90 days following the termination of the covered military member's active duty status. It is also available for the employee to take leave to address issues arising from the death of a covered military family member, such as meeting and recovering the body and making funeral arrangements. • Additional Activities—The City and employee may agree to FMLA coverage of other activities which arise out of a covered military members call or service to active duty/contingency operation. The City and employee must agree on coverage, timing, and duration. Caregiver Leave: Under federal law, an eligible employee may take up to 14 weeks (in addition to the 12 weeks covered by FMLA/FLA for a total of 26 weeks) of unpaid leave in a single 12 month period to care for a spouse, child, parent or next of kin (nearest blood relative) with a serious injury or illness who • Is a current member of the armed forces, and • incurred serious injury or illness in the line of duty on active duty, and • who(a) is undergoing medical treatment, recuperation or therapy, or (b) is an outpatient or (c) is on a temporary disability retired list. This is to include injuries to the service person's mental health as well as physical health as long as those injuries render the service medically unfit to perform his/her military duties. Employees may only take a total of 26 weeks of unpaid leave in a 12 month period, even if there is more than one FMLA qualifying event. Military Caregiver Leave extends to both the National Guard/Reserves and RegularArmed Forces. See US DOL website and Final Rule for details regarding notice, certification, and serial injuries. Maintenance of Health Benefits: While on active duty leave, an employee may choose to retain or not retain health benefits 1 - 42 while on leave for him or herself and covered dependents. If the employee chooses to retain benefits the maximum period of coverage will be the lesser of a.) the 18 month period beginning on the date on which the employee's absence begins; or b.)the day after the date on which the person fails to apply for our return to a position with the City. The employee will be responsible to cover monthly premiums for him/herself and covered dependents while on leave. If the employee chooses to terminate health benefits while on leave, when he/she returns the benefits will be reinstated, subject to terms and conditions and underwriting rules of the plans. 7.03 JURY DUTY If an employee is called forjury duty, the employee shall promptly notify his/her supervisor of such jury duty service. If the employee is called to sit on a jury during his/her normal work hours, the employee will receive his/her normal salary but shall surrender to the City any pay forjury duty paid to the employee, excluding mileage, if applicable. When the employee is excused from jury duty, he/she shall report back to work immediately and notify his/her supervisor that he/she is able to return to work for the balance of his/her shift. This section does not apply to time spent in court on personal business. Such time shall be charged to accrued vacation, comp time, or leave without pay. 7.04 HOLIDAYS (Regular full time and Regular part-time employees) Holidays are set forth in the appropriate ordinance or labor agreement. The holidays for Management and Non-representative employees are: New Year's Day Thanksgiving Day Martin Luther King Jr. Birthday Day after Thanksgiving Day Presidents Day Christmas Day Memorial Day Two (2) Floating Holidays Independence Day Labor Day Veteran's Day Two floating holidays shall be granted to eligible employees on the payroll, effective January 1 st of each year. Employees hired after July 1 st shall receive one floating holiday for the calendar year. Floating holidays may be taken in only 8-hour periods and must be scheduled in advance with the supervisor. Police labor contract provides for 1 floating holiday refer to Union contract. 7.05 FAMILY MEDICAL LEAVE 1 - 43 Federal Family Medical Leave Act (FMLA) and Washington Family Leave Act (FLA) (RCW 49.78) The Washington Family Leave Act (FLA) is the State's version of the federal Family and Medical Leave Act(FMLA). The federal law supersedes where the provisions are identical. Underthe federal Family and Medical Leave Act(FMLA)and the State's Family Leave Act eligible employees are entitled to receive up to 12 weeks of unpaid leave in a twelve month period when such leave is for a qualifying event as described below under Entitlement to Leave. The leave available under these two statutes runs concurrently. The twelve weeks of FMLA/FLA leave will commence when an employee has been absent for three (3) calendar days from the occurrence of a FMLA/FLA qualifying event. However, an employee who has no leave available may request FMLA/FLA leave from the first day of a qualifying event. Eligibility for FMLA Leave--An eligible employee is defined as: • An employee who had worked for the City for a total of at least 12 months (the months need not be consecutive, but employment prior to a continuous break in service of seven years or more need not be counted unless the break in service is (1) due to an employee's fulfillment of military obligations, or (2) governed by a collective bargaining agreement or other written agreement); • The employee has worked at least 1,250 hours in the previous 12 months (excluding all leave taken); and • The City employs at least 50 employees within 75 miles of the employee's work location. Entitlement to Leave: An eligible employee may take up to a total of 12 weeks of paid or unpaid FMLA/FLA leave during a 12 month period, defined below, for one or more of the following reasons: • Birth of a child and to care for the newborn child within one year of birth; • The placement of a child by adoption or foster care and to care for the newly placed child within one year of birth; • To care for an immediate family member(spouse, registered domestic partner(FLA only), child or parent (not in-law))with a serious health condition (see DOL website and regulations for definitions and examples of serious health condition); • When the employee is unable to work (perform essential functions of job) because of a serious health condition including work related injuries; • Any qualifying exigency arising out of the fact that the employee's spouse, son, daughter, or parent is a covered military member on "covered active duty" (National Guard, Reserves, or Regular Armed Forces); Intermittent leave may be allowed if certified as medically necessary. The employee must reasonably coordinate with the immediate supervisor so as to not unduly disrupt work operations. The details of taking leave in separate blocks of time for a single qualifying 1 - 44 event or on a "reduced leave schedule" is subject to approval of the City. Agreement for such leave is dependent upon approval by the Department Director working with Human Resources and factually governed by the details of the medical certification and the City's operational needs. Leave for recurring medical appointments must be scheduled in advance following City policy and applicable collective bargaining agreements. See regulations and www.dol. ov/whd/reds/cpmpliance/1421.htm for more detail.Military FMLA Exigency or Caregiver Leave: Alternatively, an eligible employee may take up to 12 (twelve) weeks of exigency leave or a total of 26 (twenty-six) weeks of caregiver leave during a single 12 month period to care fora covered service memberwith a serious injury or illness if the eligible employee is the service member's spouse, son, daughter, parent, or next of kin. See Policy Sec. 7.02 above regarding state military leave provisions and FMLA exigency or caregiver provisions. Under City policy, an employee must use accrued paid leave during FMLA leave and paid leave shall run concurrent with FMLA/FLA leave; during FMLA/FLA, paid family medical leave shall be charged to accrued sick leave, accrued compensatory time, accrued vacation time and floating holidays. Unpaid leave as family leave may be authorized only after the exhaustion of all forms of available paid leaves above. In the event an employee and spouse (FMLA/FLA) or registered domestic partner(FLA only) both work for the City, under FMLA/FLA, they are entitled to a combined total of 12 weeks of family leave for the birth of a child or placement of a child for adoption or foster care, and to care for a parent who has a serious health condition. However, Federal law does not extend family medical leave protection to domestic partners; once 12 weeks of FMLA leave are exhausted, a new state law family leave qualifying event will not add more leave (FLA leave ran concurrent). In a different scenario, if FLA leave is used for caring for a registered domestic partner, then later in the same 12 month period FMLA could still be used for a qualifying event (FMLA leave was not triggered in first event). WAC 357-31-520. Notice of Leave: All requests for family leave require the approval of the employee's Department Director working with the Human Resources Manager, and completion of the City's request form. Medical certifications and other medical information should be provided directly to Human Resources. An employee planning to take forseeable family leave must notify their immediate supervisor thirty (30) days in advance of the anticipated date of delivery or placement for adoption or foster care, planned treatment for an employee, or the employee's child, spouse, registered domestic partner(FLA only), or parent stating the dates the employee intends to take family leave. Written notification is preferred. For planned absences that the employee knows about well in advance, the employee is 1 - 45 required to notice the Human Resources Manager immediate supervisors soon as the employee knows about the anticipated leave of absence. This notice allows the Department to plan for the absence and adjust work schedules or take other related actions to accommodate the leave and continue with normal services. For leave that is not foreseeable, the employee should notify the immediate supervisor within one or two days of learning of the need for the leave. Medical Certification: An employee shall request family leave on an approved City request form and provide a certification from the qualified healthcare provider. See DOL Form WH- 380-E or WH- 380-F as an example of such a medical certification form. Submission of the medical certification should be made at the time of application but shall be submitted no later than 15 calendar days after application is made. Failure to provide the medical certification within the required 15 days after application, when the leave was foreseeable, may be cause to deny family leave until such time as an acceptable medical certificate is provided to the City. The medical certification can be obtained from the Human Resources Department. The medical certification must provide complete and sufficient detail, as requested on the form and consistent with the FMLA regulations, to document the employee's diagnosis, what the medical disability includes relative to the employee's essential functions, expected duration, and other relevant information requested on the medical certification form. The form will be considered insufficient if applicable entries are not completed or if the entries are vague, unclear or unresponsive. The City reserves the right to require at its own expense, a second medical certification for second opinion if the medical certification is not completed fully, lacks sufficient information, or for other legitimate reasons as determined by the City and consistent with the FMLA regulations. A third opinion may be sought if there is a conflict between the first and second certifications. See FMLA regulations for details The City has the right to require (1) recertification every 30 days in the case of an employee's absence form work or after the minimum duration for leave expires, and (2) when the employee is expected to return to work, a medical "fitness for duty" certification from the doctor for a full release to return to work. A recertification before 30 days has expired may be requested for specific changed circumstances. See FMLA regulations for details regarding recertification generally. For employee absence due to a workers'compensation (L&I)claim, the medical information provided by the healthcare provider to the City or the third party administrator will be in addition to the FMLA medical certification form described above. In otherwords, if awork- injured employee requests a leave of absence, an FMLA certification form is required in addition to the Prescription Activity Form from the employee's occupational injury treatment provider. See Policy Sec. 8.02. Maintenance of benefits: During periods of family leave, the City will maintain employee and dependent health coverage under the health plan which the employee was enrolled at the time leave 1 - 46 commenced and shall make premium payments at the same level as was made prior to leave commencement. The employee will continue to pay the employee contribution portion of the medical premium. If on unpaid status, the employee will reimbursement the City for the employee contribution on a monthly basis per procedures established by the Finance Department. Should the employee fail to return to work at the conclusion of authorized family leave, the City may recover any premiums paid for maintaining health coverage under this section, unless the reason is the continuation, onset, or recurrence of a serious health condition, or other circumstances beyond the employee's control. Employees who no longer qualify for medical coverage paid by the City may apply for continuation of coverage under COBRA.. Job Restoration: Upon returning from leave an employee must be restored to his or her original job, or to anotherjob with equivalent pay, benefits, and other employment terms and conditions. The City requires that when an employee returns to work that they provide a medical "fit for duty" certification for a full release to work, or if modified duty is requested, a release identifying the medically necessary work restrictions for the City to consider (see certification section above, and Sec. 3.12). . However, employers are not required to reinstate employees who: • Would have been laid off or otherwise had their employment terminated had they continued to work during the leave period (i.e.- Layoff), or • Give notice that they do not intend to return to work, or Are unable to return to work and have exhausted their weeks of leave in the designation 12 month period"; if an employee is unable to perform the essential functions of the position upon expiration of the 12 week FMLA leave, the employer must engage in the interactive process under disability law to determine if a reasonable accommodation may allow the employee to perform the duties of the position (Human Resources and the City Attorney should be consulted); An employee's use of leave cannot result in the loss of any employment benefit that the employee earned or was entitled to before using leave. Definition of Serious Health Condition: Serious health condition means an illness, injury or impairment or physical or mental condition that involves: • any period of incapacity or treatment connected with inpatient care (e.g. an overnight stay) in a hospital, hospice, or residential medical-care facility • any period of incapacity requiring absence of more than three (3) calendar days from work, school, or other regular daily activities that also involves either 2 visits to a medical providerwithin 30 days, or 1 visit to a medical providerwithin 7 days plus continuing treatment by (or under supervision of) a health care provider; or • continuing treatment by(or under supervision of)a health care providerfor a chronic or long term health condition that is incurable or so serious that if not treated,would 1 - 47 likely result in a period of incapacity of more than three (3) calendar days, plus two visits to a health care provider in a year; or • prenatal care. Designation of twelve (12) month period: FMLA and FLA provide that any eligible employee can take unpaid or paid job-protected leave during any 12-month period. The City will calculate the 12-month period determination as follows: • a "rolling" 12-month period measured backward from the date an employee uses family medical leave. Leave Laws for Pregnancy Related Sickness or Temporary Disability("in addition to" FMLA pregnancy leave) and Related Issues (BRENDA, please review) A healthy pregnancy is not considered a disability under state or federal law. However, pregnancy related medical conditions can arise. Under Washington State law (WAC 162- 30-020), pregnant employees are entitled to additional unpaid leave for the period of time that the female employee is sick or physically disabled due to a pregnancy or childbirth. Any such disability period must be certified by the treating medical provider as medically necessary. WAC 162-30-020 leave does not apply when the qualifying event is the placement of a newborn by adoption or foster care. Disability leave due to pregnancy and/or childbirth may be a combination of sick leave, vacation leave, personal holiday, compensatory time, and leave without pay. The combination and use of accrued paid and unpaid leave must be per the choice of the pregnant employee. WAC 357-31-515 If eligible for state FLA, the FLA leave runs consecutive to the pregnancy disability leave required under WAC 162-30-020; FLA leave begins after the disability leave ends. Pregnancy disability leave runs concurrent with the FMLA leave. Pregnancy disability leave extends the 12 weeks of leave allowed under state law for the duration of the pregnancy related physical disability. (Ordinary FMLA/FLA non-pregnancy qualifying conditions provide concurrent leave.) For example, if there is a pregnancy related physical disability under WAC 162-30-020, the disability period runs concurrentwith FMLA leave, and the FLA leave understate law does not begin until after the disability period ends. This means that a pre-birth disability period (e.g, bed rest)could run for 12 weeks (or 6 weeks pre-birth and 6 weeks post-birth recovery period) followed by 12 weeks of FLA leave (24 weeks total). Also, a post-birth disability period (e.g., cesarean section)could last for 4-6 weeks followed by 12 weeks of FLA leave (18 weeks total). See Washington Labor and Industries FLA and pregnancy discussion on L & I website and www.hum.wa.gov/FAQ/FAQPregnancy.html. http://lni.wa.gov/WorkplaceRights/files/FamilyLeaveFAQs.pdf 1 - 48 Compensation and Maintenance of Health Benefits while on leave: All policy and practice related to other non-work related sickness or temporary disability shall apply equally to pregnancy related sickness or temporary disability (i.e. paid leave provisions, medical certifications, benefits, and combination with other leave). Under federal and state law, all leave policies must apply equally to pregnancy related sickness or disability leave. Duration of Leave and Return to Work: The duration of the pregnancy related disability leave is based on medical necessity as set out in a physician's certification and is typically six to eight weeks, unless there are medical complications. Additionally,Washington Law against Disability Discrimination also includes "temporary disabilities" as a condition subject to the law on reasonable accommodation, which may include a medical provider's request for a reasonable period of unpaid leave, or a temporary light duty accommodation. See Policy Sec. 3.12&7.06(RCW 49.60). Human Resources and the City Attorney should be conferred with on this issue. Job Restoration: An employee returning from a pregnancy disability leave under state law, and medically cleared to perform her duties, must have herjob restored or return to an equivalent job with the same pay unless justified by adequate facts concerning business necessity. Under federal law, the Pregnancy Discrimination Act requires job restoration to the same extent that other employees with temporary disabilities are returned to the same position. Extended leaves and requests forjob accommodation upon return from leave are subject to reasonable accommodation analysis under disability law. Breastfeeding Upon Return to Work: The City will comply with the FLSA and state law regarding reasonable breaks and approved non-bathroom location to express milk for a newborn (RCW 43.70.640). The Patient Protection and Affordable Care Act ("'Affordable Care Act's amended section 7 of the Fair Labor Standards Act ("'FLSA'� to require employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. See DOL website information for additional guidance. http://www.dol.gov/whd/regs/compliance/whdfs73.htm For detailed reference regarding issues related to pregnancy, refer to: 1. Federal Pregnancy Discrimination Act (PDA), 2. Federal Family Medical Leave Act (FMLA) Policy Sec.7.05, 3. Family Leave Act— RCW 49.78, Policy Sec.7.05 4. Discrimination - Human Rights Commission — (RCW 49.60), 5. Pregnancy, childbirth, and pregnancy related conditions — WAC 162- 30-020, 1 - 49 6. Applicable Collective Bargaining Agreement (CBA), 8. Reasonable Accommodation — ADA; WLAD (RCW 49.40), 9. Breastfeeding at Work — FLSA and RCW 43.70) Leave for domestic violence, sexual assault and stalking Any City employee is authorized reasonable unpaid leave from employment, in either continuous blocks of time or intermittently, or continued employment on a reduced work schedule, when the reason for the leave is one or more of the following (RCW 49.76): • An employee seeks assistance from a lawyer or law enforcement to prepare for or participate in a civil or criminal legal proceeding related to incidents of domestic violence ("DV"), sexual assault, or stalking that involved either the employee or a family member of the employee, • An employee seeks or attends treatment for physical or mental injuries of the employee or a family member caused by domestic violence, sexual assault, or stalking, • An employee obtains services from a domestic violence shelter, rape-crisis center, or similar facility for the employee or a family member for relief from the DV assault, or stalking, • An employee obtains mental health counseling for DV assault or stalking for the employee or family member of the employee who has been a victim, or • An employee participates in safety planning or relocation for the employee or a family member to increase safety from future DV assault or stalking. "Family Member" includes child (biological, adopted, foster or stepchild), spouse, registered domestic partner, parent, parent-in-law, grandparent, or person the employee is dating. RCW 49.12.265 for additional definitions. Notice of Leave: Employees are required to give advance notice of the need for leave consistent with this policy and the provisions of state law if possible. If the situation does not allow for advance notice the employee must notify the City no later than the end of the first day the employee takes leave. Upon request, the employee m ust provide verification with a reasonable time before or after the leave. Verification includes (RCW 49.76.040 (3) & (4)): A.) Police Report, B.) Court order of protection, C.) Documents supporting a court appearance, D.) Statement from a domestic violence advocate, attorney, clergy member, or medical professional, or E.) An employee's written statement. The content of the verification document shall comply with the purpose of this policy 1 - 50 provision and the substance directed in state law (RCW 49.76). Information provided by the employee as provided herein will be maintained as a confidential document to the extent provided by law, will be subject to Public Disclosure Law, and will not be further disclosed except as required by law or legal process. Maintenance of health benefits: To the extent allowed by law, an employee will retain their health insurance benefits while on leave, the same as while working. Compensation while on leave: An employee may use accrued paid leave to receive compensation while on leave. Employee is not compelled to use accrued leave. An employee can maintain their leave banks for other uses. Job Restoration: Employee is entitled to job restoration at the end of the leave. The City will restore the employee to the same position or equivalent position in pay, benefits, terms and condition. This requirement does not apply to temporary employees or employees hired to work on a limited term project that was completed before or during the leave. Details regarding restoration exceptions are found in RCW 49.76.050 (3). Potential Interplay with FMLA/FLA: Once placed on leave for domestic violence, sexual assault or stalking as described above, if an employee has a serious health condition or needs to provide care to a qualifying family memberwith a serious health condition related to the DV assault orstalking, the FMLA/FLA provisions above may apply and the employee may be placed on concurrent Family Medical Leave if eligible. Family Care Act (BRENDA, please review) Underthe Washington Family Care Act (RCW 49.12.270; WAC 296-130-030) employees may use their choice of earned sick leave or other paid time off to care for a child (biological, adoptive, foster, step-child) with a "health condition" or a spouse, registered domestic partner, parent (biological or adoptive), parent in-law, or grandparent of the employee with a "serious health condition" or "emergency condition," or a child eighteen (18) years and older with disabilities. The Family Care Act allows the use of earned sick leave or paid time off for the employee to care for parents' in-law and grandparents; these family members are not covered under the Family Medical Leave statutes. To see full scope of permissible use of leave, see definitions found in RCW 49.12.265;WAC 296-130- 020. The applicable collective bargaining agreement and policy must be followed except an employee may use any accrued paid leave under this provision. If the need for sick leave or other paid time off is also covered by the FMLA, the FMLA policy and law also applies and the leave shall run concurrently. An employee may not be disciplined or threatened with discipline for properly using paid leave under this provision. See sick leave policy above, Sec. 7.01. The City may require 1 - 51 medical verification regarding the need for use of paid sick or other paid leave asset out in Sec. 7.01 above. Care of a healthy newborn is not covered under this provision. Refer to FMLA provisions above, this section. 7.06 LEAVE OF ABSENCE WITHOUT PAY A leave of absence without pay is permitted by the City under certain circumstances as required by law(see Leave Policy Chapter7 set out above)oras provided by management discretion. A leave of absence by management discretion should be requested only after all other paid leave benefits are exhausted. The City reserves the right to approve, modify, or deny any leave of absence without pay request except as required by law. Generally speaking, while on a discretionary leave of absence without pay, the employee does not accrue any paid leave benefits and is required to pay for continuation of their health benefits, unless the law provides otherwise. (See statutorily protected leaves (Policy Ch.7)). Human Resources will assist the employee concerning their options for continued health coverage. A leave of absence without pay may be extended by the City to regular full-time and regular part-time employees, for specific periods of time, on a case-by-case basis. Such leaves may be granted, as required by law, as a reasonable accommodation foremployees with temporary disabilities under federal or state disability law, for personal or educational reasons, or as medical leave for employees not covered by the FMLA/FLA. An administrative leave of absence with out without pay may also be provided at the sole discretion of the City Manager while a disciplinary allegation is under investigation. An administrative leave of absence pending a disciplinary investigation may be set in motion by the verbal request of a supervisor or Department Director. Ordinarily, a discretionary leave of absence without pay must be requested in writing on the Leave of Absence Request Form, obtained from Human Resources, and submitted to the Department Director as soon as the need for such leave is known. The request shall contain the reason for the leave and the expected duration of the requested time off, together with the date the employee will return to work. If the basis for the leave is related to a medical condition, the City may request a medical certification explaining among other items the need for leave, prognosis, and expected duration of the medical leave. The employee's City anniversary date of employment shall be adjusted equal to the duration of the leave of absence, if such leave extends beyond thirty (30) days. Failure of the employee to return from an approved leave of absence without pay or make other arrangements acceptable to the City Manager shall ordinarily result in termination of the employee, unless unique circumstances exist, as determined by the City Manager. 7.07 DONATION OF PAID LEAVE 1 - 52 This policy shall apply when a regular full-time employee or regular part-time employee has exhausted all forms of paid leave (i.e., vacation, sick leave, holidays, and comp time) because of a catastrophic illness or catastrophic injury affecting the employee. or eligible dependent. The policy will not apply to an employee on Worker's Compensation benefits or receiving long-term disability (LTD) benefits or any other form of compensation. The application of this policy is subject to the discretionary approval or disapproval of the City Manager per the process described below. Donated time for any employee shall expire upon the return of the employee with the following caveat: The employee who receives donated time, and returns will have 40 hours of remaining donated time remain on the books for incidental use. . A catastrophic illness/injury is one which is likely to result in an extended disability of several continuous weeks or more, based on medical evidence as provided by a physician's certification. The donation of the leave is intended to assist an employee during the 90-day waiting period before the long-term disability benefits begin. An employee cannot receive donation of leave time in excess of three months and only once in a 12 month period. In the event a medical situation occurs where an employee needs donated paid leave from other employees, the Department Director will notify the Human Resources Office, which will then post a notice that donation of paid leave time is needed to assist another employee. H.R will coordinate the process with payroll and be the contact forthe employee on any matters related to their leave. This is to ensure privacy and confidentiality. If an employee wishes to donate a portion of his/her accrued paid leave (i.e., sick leave, vacation, comp time or floating holiday time) to another employee, the employee will complete the donated time form and submit it to HR or Payroll. . The Human Resources Manager shall have the authority to approve or deny the donation, based on the following factors- 1. The nature of the extended illness or injury to the employee to determine if it meets eligibility for donated time. 2. The historical use of sick leave by the employee receiving the donation. If the employee has misused or has a record of abusing sick leave usage, the request may be denied. 3. A physician's verification of the extended disability. Appeal Process: If the Human Resources Manager denies the request for donated time, the employee may appeal the matter to the City Manager for review. The donation, if approved, shall be on an hour-for-hour basis without any salary conversion. The maximum donation an employee may contribute is eighty (80) hours of paid leave time. The employee donating sick leave hours must maintain a minimum balance of three (3) weeks of accrued sick leave. Employees donating hours shall not receive payment for those hours at the time of resignation or retirement. 1 - 53 The Human Resources Manager will notify each employee of the hours donated and will initiate the paperwork for the transfer of paid leave time. CHAPTER 8 —WORKERS COMPENSATION AND LOSS CONTROL 8.00 PURPOSE It is the policy of the City of Port Angeles to provide a safe work environment, as required by law, for all employees. The City of Port Angeles'Safety Program requires all employees to perform their assigned work as safely as reasonably possible. The success of this program necessitates cooperation from every employee in each City department. The Department Directors and Division Managers are responsible for implementing safety policies as they apply to workers in their Departments/ Divisions, as well as the general public affected by their work. Each employee is responsible for following the safety policies in the completion of his/her assigned duties, for his/her own personal safety and the safety of his/her fellow employees, the general public, and City property. Additionally, every employee shall be evaluated on safety practices and habits applicable to his/herjob performance. 8.01 REPORTING OF ACCIDENTS INVOLVING CITY VEHICLES OR EQUIPMENT All accidents to employees or the public involving City vehicles or equipment, regardless of severity, must be reported on the City"Report of Accident/Incident or Damage/Injury" report form and delivered to the Human Resources Office within 24 hours. These forms are available from your supervisor or Human Resources. . The employee's supervisor is responsible for making sure that the accident report is completed, and ensuring that it includes photographs of the scene, if appropriate, and witness statements containing names, addresses and phone numbers, and other relevant information. All vehicle accidents involving city vehicles oremployees must be reported to the Police Department for officer investigation. The supervisor must make an immediate investigation, as complete as the situation warrants. The supervisor shall be responsible for obtaining damage estimates. Equipment Services will assist in determining damage estimates and repairs to city vehicles. . 8.02 REPORTING ON-THE-JOB INJURIES -WORKER'S COMPENSATION 1 - 54 Employees injured on the job are covered by worker's compensation benefits in accordance with State laws. This program covers medical expenses and time loss benefits approved by the State. (RCW 51.28) In the event of an injury, the employee must advise his/her supervisor immediately so that proper medical attention can be obtained and the"Employee and Supervisor Report of On- The Job Injury" is completed the same day of the injury and forwarded to Human Resources. If medical attention is necessary or the employee misses work as a result of the injury, the employee and supervisor must complete the SIF-2 (Self Insured Accident Form)from Human Resources. Employee and supervisor should complete the form, and the employee should report the claim number to the healthcare provider for billing purposes. Both forms should be returned to Human Resources for processing as soon as possible. If the employee misses work because of the injury (called 'time loss'), the employee must provide a 'return to work' form from the doctor prior to returning to work. If the employee misses three (3) or more days of work, the worker's compensation program will pay approximately 60% of the employee's salary for time loss. The employee must use accrued sick leave time with the time loss benefits equal to his/her regular salary. If the employee misses less than three days of work, s/he shall use accrued sick leave. See details in L& I website. http-Hlni.wa.gov/Claimslns/Claims/Benefits/TimeLoss/default.asp When the employee receives the first time loss check, he/she shall meet with Payroll to select one of the following options: a) turning the check into the City for sick leave credit and to receive a regular paycheck, or b) keeping the check and receiving only the accrued sick leave portion from the City. Questions regarding these options should be directed to Human Resources. Extended leaves of absence due to a work-related injury may be subject to disability reasonable accommodation and hardship analysis under state or federal law. Leaves of absence due to work related injuries are also subject to the FMLA/FLA Policy Sec. 7.05 where applicable. Consult with Human Resources and the City Attorney. If the employee is released by a medical provider for light duty work, the department will determine whether or not temporary light duty work is available, whether the employee's medical restrictions can be accommodated, and the duration that such light duty work may be available. See Policy Sec. 3.12. No return to work will occur without the employee providing an Activity Prescription Form ("APF")from the treating occupational injury medical provider. Until the doctor releases the employee to full duty, the employee is required to submit APF 'return to work' forms to his/her supervisor after each doctor's visit, who will forward the original to Human Resources. 1 - 55 Employees or supervisors shall direct questions about the worker's compensation process to Human Resources, or questions related to pay to Payroll in the Finance Department. See L & I website for return to work details. http-//www.Ini.wa.gov/Claimslns/Insurance/Injury/LightDuty/ 8.03 EMPLOYEE RESPONSIBILITY Each employee has a responsibility to assist with the City's safety program, including but not limited to the following: A. Comply with and keep informed of necessary safety work rules, regulations, and practices. B. Use required safety Personal Protective Equipment(PPE)on equipment and around machinery, such as proper shoes, ear and eye protection, hardhat, respirator, etc. C. Report all injuries and accidents to his/her supervisor as soon as possible, regardless of the severity. D. Report to the supervisorwhen the employee is taking any prescribed drugs that may affect the employee's ability to safely perform his / her job. E. Report any unsafe conditions or acts, near misses, and other safety concerns immediately to his/her supervisor. F. Wear a seatbelt while operating City vehicles, as required by law and do not talk on cell phones while driving, except for hands-free devices, approved by the City. G. Actively participate in City wide and departmental safety training and safety programs. 8.04 SUSPENSION OR REVOCATION OF DRIVERS LICENSE An employee whose job duties includes operating a City vehicle and whose drivers license has been disqualified, suspended or revoked for any reason must immediately notify his/her supervisor. Any employee who fails to provide such notification or operates a City vehicle without possessing a valid drivers license, will be subject to discipline. Loss of a Commercial Driver's License may result in termination of employment if a CDL is an essential job function. Supervisors shall ensure that all employees are informed of this policy. 8.05 PREVENTION OF WORKPLACE VIOLENCE The purpose of this policy is to provide management and employees with guidance should they encounter a situation they believe may result in violence, and to provide information and training to management and employees to help minimize the risk of injury or harm that may result from violence in the workplace. Workplace violence is any verbal or physical action that is communicated or perceived as a threat, harassment, abuse, intimidation or personal contact that produces fear, causes bodily harm or damages property. It may 1 - 56 involve employees,family, strangers or customers. Because of the risk of misunderstanding it may also include joking about violence. This description is not all-inclusive. The City of Port Angeles will not tolerate any acts of violence to persons or property, or harassment of any employee or member of the public while in City offices, facilities, vehicles or work sites. The City recognizes that many incidents of violence represent a personal crisis that an individual is unable or unwilling to solve alone. The City shall provide the affected employee with resources as assistance to help resolve the issues to prevent escalation and enable continued productive employment. All employees are responsible for their personal conduct and behavior and will not participate in any acts of violence, inappropriate behavior such as fighting or assaulting a co-worker or customer, using profanity or other abusive language, or using threatening or intimidating behavior in the workplace on City premises. City employees are not permitted to carry weapons in the workplace, including knives in excess of a 2 '/2 inch blade, dangerous or flammable chemicals or liquids, or other object intended to injure or harm. This policy excludes normal work tools or duty firearms in the case of sworn police officers. A City employee's possession of firearms or other weapons on City property (unless required as a condition of employment) is prohibited; however, one exception is allowed. This one exception is if an employee has a personal and lawful weapon, which is locked and out of sight at all times inside their vehicle while on City property. This weapon may not be removed from the locked vehicle for any reason while on City property. All employees should promptly report to management any threatening or dangerous conduct occurring within the workplace. The manager will report the incident to Human Resources and the appropriate department head. Employees should additionally notify management of a court-issued restraining order filed on behalf of an employee that prohibits the subject of the order from contacting the employee at work. City If an employee is victim orwitness to any acts of violence by another employee or member of the public, or if they fear they may become involved in an act of violence, they shall immediately report the event to their supervisor and Human Resources (and if criminal to the Police Department). In the event the incident involves the employee's supervisor, the report of the incident should be to the next level of management. As soon as possible after a verbal report, the employee should make a written report(file a complaint) and turn it in to their supervisor promptly (with copy to Department Head and Human Resources). This complaint shall explain the nature of the issue and description of the facts, names of involved, any witnesses, and include dates, times, location. Employees engaging in any form of workplace violence as described in this policy will be subject to discipline up to and including termination. An employee may be removed from the workplace temporarily and placed on administrative leave while the allegations that the employee violated the workplace violence policy are investigated. While on administrative leave the employee is required to check in each day with the employer by phone, and remain accessible to the employer(unless vacation/sick leave had been approved prior to placing the employee on administrative leave). While on 1 - 57 administrative leave, the employee is not permitted to be in the workplace or on the employer's premises. All employees have access to the City Employee Assistance Program (EAP)for confidential professional assistance. This program can provide employees with advice, evaluations, diagnoses and treatment plans. 1 - 58 CHAPTER 9 - STANDARDS OF EMPLOYEE CONDUCT AND DISCIPLINE (Excluding City Manager, Probationary and Temporary Employees all of whom are at-will employees) 9.00 PURPOSE Note to Brenda: the city is not an at-will employer for union or non- union) Standardized rules of employee conduct and disciplinary procedures are necessary to ensure fair and equitable treatment of employees. These procedures are established so that all employees and supervisory personnel are aware of the rules of conduct in the workplace and employee discipline. The intent of this procedure is to provide such employees a pre-disciplinary review process which includes (a) verbal or written notice of the intent to discipline; (b) an explanation of the evidence and charges against the employee; and (c)an opportunity forthe employee to respond to the charges. This pre-disciplinary review process is intended to be informal. Exclusions from this pre- disciplinary review process are (a)verbal reprimands; (b)performance evaluations; and (c) written reprimands that do not result in loss of pay or benefits. An employee is entitled to a pre-disciplinary meeting to review the evidence and documentation which will result in disciplinary action as well as the right to respond verbally and/or in writing to the charges brought against him/her. However, these procedures do not limit additional disciplinary action or evidence, if additional facts/evidence become subsequently available at a later date. The pre-disciplinary meeting is an informal meeting, including the employee, his/her representative, if any, the Department Head and employee's supervisor, and others as determined by the Department Head. After conclusion of the informal meeting, the Department Head will determine whether to proceed with the disciplinary action or amend his action accordingly. Such a decision may occur at the meeting or following the meeting, if additional time is needed. Exceptions to entitlement to the pre-disciplinary meeting are (a) verbal reprimands; (b) performance evaluations; and (c) written reprimands that do not result in loss of pay or benefits. 9.01 REPRESENTATION During any meetings between a supervisor/manager with an employee involving disciplinary action or when such action may reasonably be expected, the affected employee has a right to representation on his/her behalf. Such representation is generally by a union officer, shop steward, or union business agent. Management will make an effort to comply with a request by an employee for representation prior to discussions or implementation of disciplinary action unless circumstances require immediate action. 9.02 RIGHT OF APPEAL Employees may appeal disciplinary action according to the procedures applicable to them. Non-represented administrative and management employees should use the Complaint Resolution Procedure set forth in Chapter 10. Represented employees should use the 1 - 59 grievance procedure in their collective bargaining agreement. Police and Fire Department Civil Service employees may appeal disciplinary actions that involve loss of pay or benefits to the Civil Service Commission., except sworn police officers are covered by the terms of the labor contract not civil service. An employee shall request an appeal within the time frame provided in the applicable policy, agreement or statute. Failure to file such an appeal within this time period shall result in denial of the appeal as untimely and forfeits any right to appeal the disciplinary action. 9.03 CAUSES FOR DISCIPLINARY ACTION (Brenda The following list provides examples of conduct that may result in disciplinary action, up to and including termination. This list is not exhaustive; other conduct that is detrimental to the interests of the City may also result in disciplinary action. A. Excessive, unexcused tardiness, or excessive absenteeism in violation of the City's leave policies. A. Violation of the City's workplace harassment or retaliation policy. B. Violation of the City's workplace violence policy. D. Conviction of any criminal act, including any felony or misdemeanorthat adversely impacts the City, reflects poorly on the City, or negatively impacts the employee's ability to effectively perform the job. E. Conduct unbecoming an employee in the public service on or off duty, which adversely affects the employee's performance, reflects poorly on the City, or negatively impacts the effectiveness of the City's service to the public. F. Performance that does not meet City standards, as determined by management through the performance evaluation process. G. Insubordination. H. Violation of the City's substance abuse or drug free workplace policy I. Neglect of duty. J. Negligent or willful damage to public property, or waste of public supplies or equipment. K. Violation of any lawful or reasonable regulation or order made and given by a supervisor. L. Misrepresentation in securing employment. 1 - 60 M. Dishonesty, including but not limited to falsification of records, time cards, or other work activity records; this includes theft of money, time, or property of the City. N. Discourteous treatment of the public or other employees. O, Willful violation of any City rule, regulation, policy, procedure, or safety practice. P. Failure to report an accident or falsely filing a report concerning an injury, accident, or other related incident. Q. Smoking in nonsmoking areas or in City vehicles. R. Sleeping on the job. S. Violation of the any of the City's Personnel Policies and Procedures. T.Q Misconduct of any kind. CHAPTER 10 - SUBSTANCE ABUSE AND DRUG TESTING POLICY The City of Port Angeles is committed to maintaining a drug and alcohol free work environment. The misuse of drugs or alcohol by employees is a threat to the public welfare and the safety of employees. Accordingly, employees are strictly prohibited from possessing, selling, consuming, or being under the influence of any drug (except as authorized by a physician)or alcohol while on City property, in City vehicles, or engaged in City work. If you are taking prescription drugs that may make you drowsy or impair your mental functioning, you must inform your supervisor so that s/he can make sure such drugs will not affect your ability to perform your job safely and effectively. The City of Port Angeles provides no exception for"medical marijuana." The possession of marijuana is still a crime under federal law and may not be possessed in the workplace. If medical marijuana is being prescribed to an employee understate law, a medical certification is required to be provided to the supervisor to assure the use of the drug will not impair your ability to safely and effectively perform your job. Any violation of this policy will result in discipline, up to and including immediate termination. The City encourages employees with drug or alcohol problems to come forward and seek help. If you have a drug or alcohol problem, and discuss it with management before it affects your performance or is discovered by management, the City will refer you to a treatment program and if possible, hold your job for your return. Under those circumstances, you will not be disciplined unless you fail to successfully complete the rehabilitation program or test positive for drugs within two years of completing a program. Drug and Alcohol Testing The city complies with federal law requiring drug and alcohol testing of employees who hold Commercial Driver's Licenses ("CDL"). Testing will be done in a manner that assures 1 - 61 accuracy, reliability and privacy. CDL applicants will be tested priorto employment. Failure to pass will disqualify an applicant from employment. CDL employees will be tested when there is reasonable cause to suspect impairment based on objective facts and circumstances, after involvement in an accident in a City vehicle where their performance could have contributed to the accident, randomly as selected by a computer selected list supplied each month, and upon return to duty after a previous positive test result. Any CDL employee who is convicted of driving under the influence or violation of a drug statute must notify the City within five days of conviction. Analytical urine testing will be conducted for marijuana, cocaine, opiates, amphetamines and phencyclidine. A positive test will be confirmed through Gas Chromatography/Mass Spectrometry testing. Alcohol testing will use evidential breath testing devices. A positive test result will result in a second test a short time later. Any alcohol test greater than 0.02 will be considered a positive test. A Medical Review Officer will review all positive test results. Further details regarding drug testing will be provided to CDL employees during new employee orientation. It is the intent of this policy to incorporate any changes in Federal and State laws regarding CDL drivers into this policy manual. CHAPTER 11 - COMPLAINT RESOLUTION PROCEDURE (Excluding City Manager and Department Heads) CHAPTER 11 - COMPLAINT RESOLUTION PROCEDURE (Excluding City Manager and Department Heads) 11.00 PURPOSE The Complaint Resolution Procedure is established to provide an orderly process fora non- represented employee to attempt to resolve employment related complaint, unfair treatment, or improper application of a policy, rule, or regulation. This employee complaint procedure is not to be used relative to issues covered by the labor contracts. Such matters are addressed through the grievance procedure of the respective labor contracts. An employee cannot process a grievance through the labor contract and attempt to use these complaint procedures for the same or similar issue. NOTE: This complaint resolution procedure is not available to employees on probation who are discharged during the probationary period. The only exception to this is if such discharge involves workplace harassment or discrimination, in which case, this complaint procedure is limited to the specific charge. 11.01 EXCLUSIONS FROM THE COMPLAINT RESOLUTION PROCEDURE 1 - 62 A. Work assignments, shift scheduling, overtime assignment, and similar related matters. B. Performance evaluations. C. Complaints filed after twenty(20)days from the date of occurrence, or after twenty(20) days from the date the employee had knowledge of an occurrence. 11.02 TIME LIMITS Time limits are established to resolve complaints quickly. Complaints must be filed within 20 days from the date of occurrence or the employee having knowledge of the incident. Time limits in the procedure may be extended by written agreement of the City and the affected employee. 11.03 WRITTEN COMPLAINT The employee must state the nature of the complaint and the desired solution in writing , togetherwith any supporting documents. The complaint resolution process begins with the employees immediate supervisor, in a management capacity. The Manager will hold a meeting with the employee to review the facts, discuss the complaint with the employee and others who may be witnesses or who have immediate knowledge of the matter. The Managerwill issue a written decision to the employee within two weeks from the date of the meeting. If the employee is not satisfied with the decision of the employee's supervisor, he/she may advance the complaint to the next level in the chain of command for the department, and ultimately to the Department Director. There will be written comments by each level of supervision as to their decision on the complaint. The employee may advance the complaint to the City Manager as the final stage of the complaint process and the decision of the City Manager shall be binding. CHAPTER 12.00 - CITY TRAVEL, VEHICLE USE, AND REIMBURSEMENT POLICY 12.00 TRAVEL POLICY This policy is to provide for consistent application and use of travel funds, and authorization and reimbursement of travel expenses. The City Manager may authorize travel expenses that vary from this policy at his/her discretion, on a case-by-case basis, when necessary. It is the employee's sole responsibility to use travel funds for their approved purpose only and properly document expenditures with receipts in accordance with this policy. Contact the Finance Department for a copy of the travel request form. Failure of the employee to properly and timely reconcile their travel advance through the Finance Department shall authorize the City to deduct all funds advanced from the employee's paycheck. AUTHORIZATION FOR TRAVEL EXPENSES 1 - 63 Prior to travel, employees must submit a Travel Request form to their Department Director for approval. The form must provide all travel costs, including transportation, lodging, registration, meals, and other related expenses. If an employee wants money for travel expenses in advance of the travel, such requests must be received in the Finance Department by 5 p.m. on Wednesday of the week before the planned trip. Any prior travel advances must be reconciled before additional advances will be given. Requests for less than $50 will be processed after completion of the travel. All travel requests must be signed and approved by the employee's Department Director or his/her designee. Travel for Department Directors must be signed and approved by the City Manager or his/her designee. Travel for the City Manager must be signed by the Mayor or his/her designee. Travel for Council members must be signed and approved by the City Manager or his/her designee. All travel in excess of $2,500 must be signed and approved by the City Manager. This includes ALL travel related expenses, such as registration, testing, mileage, etc. REIMBURSEMENT TO THE EMPLOYEE FOR EXPENSES Travel expenses in excess of those received in advance will be paid to employees upon submission of the approved travel request/expense form. Travel expenses which the employee cannot document with receipts or other appropriate verification will not be approved for reimbursement (excluding meals). Registration fees may be paid by City credit card, or be submitted for payment through Accounts Payable and paid directly to the vendor from information submitted.A copy of the registration showing what is included in the registration fee (i.e. meals, recreational activities, etc.) must also be attached to the Advance Travel form. Travel expenses incurred but not approved on the Travel Request form may be reimbursable with proper verification, provided such expenses are directly related to City travel and are approved by the Department Director or City Manager, per procedures noted above. Expenses incurred but not related to the actual travel, such as for copies, books, etc., should not be included on the travel form. Rather, these should be submitted for payment either through Accounts Payable or petty cash (depending on the amount) and coded accordingly, or may be paid by City credit card. The employee shall submit the completed and reconciled travel/expense form to Finance within five (5) working days after completion of the travel. Per IRS regulations, travel not reconciled in a timely manner will become taxable income. Checks for less than $10.00 will not be written for those who travel frequently, but may be added to the next travel request. It is the responsibility of the employee to keep track of the minor amounts owed and add them to a future travel advance. 1 - 64 The Finance Director shall review meal, lodging, mileage and car allowances periodically and recommend adjustments. REIMBURSEMENT TO THE CITY BY EMPLOYEES Employees are encouraged to pay advance travel overages by check or money order. However, in the event this is not possible, cash and the travel form must be turned in to the Finance Department for a written receipt. ALLOWABLE EXPENSES Transportation Reimbursement: A pool car should be used for travel, however, if approved by the Department Director, private vehicles may be used and mileage paid at the rate set by the City Manager. If no pool car is available, the IRS mileage will be paid. The IRS mileage rates can be found on the web at http-Hirs-mileage-rate.com. If more than one employee is traveling at the same time to the same event, only one may claim the full mileage allowance or they may share the allowed amount fora private vehicle. If more than one employee is traveling at the same time to the same event and one is taking a pool car, the other employee shall receive no mileage reimbursement, unless there is a valid work related reason for having to take a second vehicle, and with advanced approval by the City Manager Meals: The IRS meal per diem schedule by location will be distributed annually by the Finance Department or can be found on the web at http-//www.gsa.gov/portal/category/21287. New rates go into effect as of October 1 of each year, and include tax and gratuity. The maximum per diem allowable will be at the Seattle level, regardless of IRS rates. To qualify for breakfast, an employee must leave before 7:00 a.m. To qualify for dinner,the employee must reasonably expect to return from business activities after 7:00 p.m._ In the event travel is less than one day (i.e. an employee does not leave home or work until 7 a.m. or the meeting ends at early enough in the day to allow the employee to be back before 7 p.m.), the per diem payment will be pro-rated 25% for breakfast, 25% for lunch, and 50% for dinner. To qualify for meal allowance, the employee must be on City business outside the Port Angeles area (30-mile radius) during regular meal hours. No receipts are required for meal expenses unless you use your City credit card, then all receipts must be attached and no further amount will be paid. If an employee is attending a meeting or conference where meals are included, or if the hotel in which the employee is staying provides a hot breakfast included in the room rate, reimbursement for substitute meals will not be allowed and the per diem will be reduced accordingly. However, if the hotel or conference only provides what is commonly known as a continental breakfast, this does not qualify as a meal and per diem for breakfast will be allowed. Lodging: 1 - 65 Lodging arrangements must be made in the most cost effective manner. Whenever possible, IRS rates should be followed. The Finance Department publishes the rates annually and tax is in addition to these IRS rates. When calling a hotel/motel for rates, always ask for government, corporate, or other discounted rates. If the lodging expenses for the conference host site exceed the IRS lodging per diem, alternate accommodations should besought. Excess per them maybe approved under the following conditions: 1) No alternate lodging is available within a reasonable distance of the event site which is within the IRS limit; 2)Transportation between the alternate lodging site and the event site would exceed any savings; or 3) the Department Director or his/her designee has authorized the excess expenditure in writing and in advance for any exigent circumstances which may exist. In such instance, the City Manager will be informed of the variance to this policy for his/her concurrence. If a family member or a guest accompanies the employee, the employee shall pay the amount over a single accommodation. Receipts for lodging are required. Airline Tickets: Coach fare airline tickets will be purchased in the most cost-effective manner.Any charges above coach rate will be the responsibility of the employee, if they opt for upgrades, such as bulkhead row, exit row seat, etc. Each Department will be responsible for placing reservations. Invoices for airfare must be submitted to Accounts Payable for payment,with a copy of the invoice, or a City credit card may be used. The City will pay for only one piece of luggage to be checked. Ferry Fees and Taxi Fares: These expenses will be reimbursed on the basis of receipts. 12.01 VEHICLE USE POLICY General City Vehicle Policy: City vehicles may only be used by employees for City business. The Department Director is responsible to ensure compliance with this vehicle use policy for their department. An employee may be assigned a vehicle on a regular basis or for special needs due to workload changes, seasonal or weather conditions that require an additional vehicle to provide services. Employees authorized to use City vehicles shall operate the vehicle in a safe, courteous, and efficient manner and shall conform to all State and local laws governing the use and operation of a motor vehicle. Employee shall not talk on cell phones while driving a city vehicle because it is the law, or if necessary, pull over off the roadway where it is safe. Employees must have valid Washington drivers' license and proof of insurance. The City reserves the right to require employees driving City vehicles to produce a driving record abstract upon request. 1 - 66 City vehicles may not be operated if the employee has consumed any amount of alcohol or is under the influence of any drug which may impair one's ability to operate the vehicle safely. It is the responsibility of the employee to notify his supervisor of any possible impairment, so he/she does not operate equipment or vehicles. Any accident or injury occurring in a City vehicle shall be reported immediately to the employee's supervisor as well as completing the necessary accident report forms obtained from the employee's supervisor. If the vehicle is damaged and must be towed, the employee and their supervisor will contact the Equipment Services Superintendent who will coordinate the necessary towing of the vehicle and attempt to provide the employee another vehicle as they may be stranded or out of the area. A mechanic will communicate with the employee to determine if the vehicle is safe to drive or not. Gas Credit Cards: A CFN gas card is included whenever a pool car is checked out and may only be used for City-owned vehicles. After-Hours City Vehicle Use for Employees Subject to Call Back: The Department Director shall determine whether an employee takes home an assigned vehicle or has the employee report to a City facility to pick up the vehicle for after-hours use. This determination shall be based upon: a) The frequency of the call-outs (average of once per month); b) The person performs after hours emergency services; C) It is the most efficient method of operation in performing the services during the after-hours work. d) The employee must use the vehicle to respond directly to the call-out scene. Non-City Employee Transportation: An employee may transport non-City employees in City vehicles during the execution of City business only. This action requires advanced approval from the employee's Department Director. An employee assigned a City vehicle for after-hours use on a regular basis may use the vehicle for incidental personal business such as making a quick stop for groceries on the way home or other similar situation. Family members may not be transported in a City vehicle. Reimbursement for Employees Using Their Private Vehicles: Employees are encouraged to use a City vehicle for City business whenever possible. However, an employee may be authorized to use his/her private vehicle forconducting City business as determined by the Department Director. If a City vehicle is not available, reimbursement for mileage shall be based upon the Internal Revenue Service mileage reimbursement rate. In the event the employee prefers to use his/her private vehicle for out-of-town travel in lieu of an available City vehicle, the employee shall receive prior Department Director approval to be reimbursed for mileage at the rate authorized by the City Manager. 1 - 67 If an employee is authorized to use his/her private vehicle for City business, it is the responsibility of the Department Director to ensure the employee has a valid driver's license and vehicle insurance to protect the City in the event of an accident. General Rule: The personal use of a City-provided vehicle is taxable to the employee. "Personal use" includes commuting, as well as local and out-of-town personal travel. Record Keeping Requirements: Employees must keep records for business and personal miles driven in City-provided vehicles. Record keeping procedures shall be prescribed by the Finance Department. For specific IRS regulations on record-keeping and vehicle taxation, see the Finance Department. Loss of Drivers License: If an employee who is expected to drive a City vehicle or operate equipment as a normal job activity loses his/her driver's license, the employee will notify their supervisor immediately and shall not operate any vehicle or equipment. The City will determine if the employee has an acceptable driving record and what personnel actions, if any, are necessary relative to employment status due to the loss of the driver's license. Loss of a Commercial Driver's License may result in termination of employment if a CDL is an essential job function. 12.02 RECRUITMENT EXPENSES The City Manager may authorize reimbursement or the payment of certain expenses for candidates interviewed for City positions. Such expenses include reasonable costs for transportation, lodging, and meals. Expenses incurred by City employees participating in the selection process shall also be reimbursed, including meals and expenses directly related to assisting and evaluating the candidates, as approved by the City Manager. 12.03 PAYMENT OF MEALS FOR CITY BUSINESS Meal expenses for employees on official City business within the PortAngeles area may be eligible for reimbursement with approval by the Department Director at the same rates as set forth in Travel Policy, Allowable Expenses section. 12.04 TUITION REIMBURSEMENT The City's tuition reimbursement program covers payment for college course work to encourage employees to pursue job-related education/ training. Under the tuition reimbursement program, the City pays for 75% of tuition (or as provided in the labor contracts) and required books, subject to budgetary restrictions and in accordance with the following requirements: A) Requests for tuition reimbursement must be made in writing, in advance, on the form provided by the Human Resources Office. The request must identify the education goals of the employee,why they are taking the course and how the course is related to their current 1 - 68 job. If for possible promotional career advancement, the employee shall provide a detailed plan and timeline of their educational goals; ie how many courses per year and expected costs so if approved the funding may be budgeted. All tuition reimbursement is subject to available funding in the department budget. The selection of the college must be approved by the City as well to be sure City funds are being utilized cost-effectively. B. All course work must be job-related and requires advance approval by the Department Director and Human Resources Manager. . C) Prior to payment of approved tuition reimbursement, the employee must provide proof of a passing grade, 3.0 or higher , together with a copy of receipts for the course and required books. D) The City may retain certain course materials (i.e., books, reference materials) if the Department Head determines such materials are of value to the City. Courses offered during regular work hours may be approved, per the above policy, if time off can be arranged without affecting the public services or disrupting departmental operations. Such time off should be charged to accrued vacation, comp time, leave without pay, or make up the time during the workweek. 1 - 69 Acknowledgement of Receipt I, , acknowledge that I have received the City of Port Angeles Personnel Policy and Procedure Manual adopted by the City Council on September 19, 2006 and revised on _May 2014.. 1 understand that it is my responsibility to read and understand the policies and to ask my supervisor or Human Resources if I have any questions. I am expected to conform my workplace conduct to these Personnel Policies and Procedures. I understand that this Manual supersedes any prior manuals or handbooks issued by the City. I understand that the Manual contains guidelines for personnel administration and that it is not a contract. I understand that the City may revise the policies and procedures at any time with or without notice, subject to Council approval. Employee signature: Print Name- Date- Adopted September 19, 2006 Updated June 2014 1 - 70 MINUTES PLANNING COMMISSION Port Angeles,Washington 98362 April 23, 2014 6:00 p.m. ROLL CALL Members Present: Thomas Davis (by phone), Tim Boyle, Duane Morris, Scott Headrick, George Reimlinger Members Absent/Excused: David Miller Staff Present: Sue Roberds, Scott Johns, Heidi Greenwood Public Present: Cameo Little PLEDGE OF ALLEGIANCE Chair Headrick opened the regular meeting at 6:00 p.m. and led the Pledge of Allegiance. APPROVAL OF MINUTES Commissioner Reimlinger moved to approve the April 9, 2014, regular meeting minutes. The motion was seconded by Commissioner Boyle and passed 5 -0 with Commissioner Davis abstaining due to absence at that meeting. PUBLIC HEARING: MUNICIPAL CODE AMENDMENT—PROPOSED MIXED COMMERCIAL USE OVERLAY: - The overlay zone is intended to provide alternative zoning regulations that permit and encourage design flexibility through the implementation of smart growth practices to promote redevelopment, infill, and functional innovation in mixed commercial developments. Chair Headrick opened discussion on the agenda item. Associate Planner Scott Johns responded to a series of questions from Planning Commissioners regarding opportunities for an increase in height that is provided through the Mixed Commercial Use Overlay (MCO). Questions and discussion ensued regarding stormwater planning bonus, height bonus, and landscaping standards. Director West provided a response to Commissioner Reimlinger as to how design expertise would be evaluated in consideration of an MCO. Mr. West said that the design process will involve selling the design to the neighborhood and creating an environment that is compatible with the neighborhood in which the project exists. Director West noted that trained professionals use certain tools to review site plans and architects are trained to address specific development standards. M - 1 Planning Commission Minutes April 23,2014 Page 2 Commissioner Morris noted that good projects require some subjectivity. He would like to see the pre application notification public meeting that is held by the proponent require notice to a larger area than 300 feet. Director West noted that the 300 foot notice area is consistent with other overlay district notification requirements. Although notice is mailed to an area 300 feet around a site, the site is also posted such that anyone in the area will notice the posting and placed in the local newspaper. Discussion continued relative to transportation aspects, integration of this type of project into established neighborhoods and how other overlay zones function. Chair Headrick opened the public hearing. Cameo Little, 183 South Morse Lane, works for Olympic Medical Hospital. She believes that the review process and requirements of the proposed overlay will allow productive interaction between the reviewing agency and the proponent that will involve the public. She supported adoption of the overlay and believes that the flexibility it will provide will result in better functioning developments. There being no further comment, Chair Headrick closed the public hearing. Commissioner Davis asked about handicapped parking. Planner Johns responded that handicapped parking is addressed in the Building Code and does not need to be separately addressed in the overlay standards. Further discussion between the Commission and staff revealed that some housekeeping items are needed in the draft. Director West stated that staff would like to recap what has been discussed, and present a more correct draft at the next regular Commission meeting before presentation to Council. It was agreed that staff should make the housekeeping and other discussed changes and bring a final document to the next Commission meeting for a final recommendation. COMMUNICATIONS FROM THE PUBLIC None STAFF REPORTS Planner Johns noted that a nearly final meeting has been held with Department of Ecology on the Shoreline Master Plan. It is expected that a final document may be ready for Council adoption by early summer. Director West stated that staff intends to finalize the Street Tree Ordinance in June. West End Park is moving forward. Bid announcement will be out by the end of the month. M - 2 Planning Commission Minutes April 23,2014 Page 3 REPORTS OF COMMISSION MEMBERS None ADJOURNMENT The meeting adjourned at 7 p.m. Sue Roberds, Secretary Scott Headrick, Chair PREPARED BY: S.Roberds M - 3 City of Port Angeles Parks &Recreation Department Activities First Quarter 2014 January 1 st—March 31 st Vern Burton Center Main Hall Events Vern Burton Center Meeting Room Users • Elks Hoop Shoot • Retired Kiwanis • Martin Luther King Youth Basketball Tournament • Recreation Staff • NOBAS pitching clinic • North Olympic Baseball Association • Noon Hoops • Clallam County—Various Meetings&Workshops • Badminton • Amalgamated Transit Union • Volleyball • Parks,Recreation&Beautification Commission • Kids After School Program • Human Resources • Kids Winter Break Program • Civic Field Committee • Just Dolls of Washington—Doll Show&Sale • Olympic Paddlers • Blood Drive • Vern Burton Rock, Gem and Jewelry Show • Presidents'Day Youth Basketball Tournament • Finance • Airplanes • Kids After School Program • Pickleball • Junior Babe Ruth Registration • NRA • Memorial Service(Allan Stickney) • Kiwanis Kids Festival • PNCWA • Clallam County Project Homeless • Economic Development • Olympic Christian School Auction • Fine Arts Center • Vern Burton Rock, Gem and Jewelry Show • Pitching • Hoopfest • Parks Staff • Light Operations • Just Dolls of Washington • Open Gym • Senior Center • OMC Lunch • Dog Park Committee • Baseball • Legal Department • Clallam County Transition Fair Port An eles Fine Arts Center Port Ait eles Senior & Camniunit Center • Event: Director's presentation to Soroptimist Club,Director • 35 Educational Programs— 1,031 participants Juried Tidepool Exhibit for Peninsula College, and Andre • 42 Fitness/Wellness Programs—3,748 participants Feriante in Concert • 59 Social/Recreation Programs—8,491 participants • Exhibition: Art Convergence 2014 and Exotic Terrane • 4 Special Events— 189 participants • Outreach: Art Outreach Home school and Five Acres School • Volunteer Hours—5,864 • Education: Kristin Schmik clay form study, Shelia Sondil • Volunteers—378 participants crinkle paper technique, Carol Guthro exuberant clay,kids • Total Current Memberships: 1,404 basic workshop defining forms and blending color. City Total: 918 • Volunteer hours—884 from 49 docents County Total: 147 • Meetings: Membership Committee,Event Committee, • Senior Center Memberships— I"Qtr. Board Meetings,Finance Committee, and Docent Training. City -324 • Visitors—422 County— 147 * Note: PAFAC was closed 3 weeks in January for winter hiatus • 7 Rentals:631 participants • Total Attendance;1st Qtr.— 19,862 M - 4 City Pier/Gateway Events Youth,Fail ',&Adult Pro rams • Farmers'Market • Winter Break Program— 10 enrolled • After School Program— 38 registered ecial E*ent Pro tams Soorts Program,s • Martin Luther King Youth Basketball Tournament—37 teams • Adult Co-Ed Volleyball— 38 participants • Presidents'Day Youth Basketball Tournament—45 teams • Adult Basketball— 66 participants • Spring Hoopfest Youth Basketball Tournament—42 teams • Sports—Open Gyms: • Saint Patrick's Day 5 & IOK Run/Walk— 114 participants • Monday—Vern Burton Pickleball—20 participants • Tues/Thurs. —PA High School Basketball—6 participants • Wednesday—Jefferson Pickleball—8 participants • Mon/Wed/Fri—PA High School Volleyball— 12 annual • Thursday—Dry Creek Soccer—8 participants • Frida —Stevens Volle ball—8 earticieants jjj/� '� //�it ,'rii / • City Council Meetings January • Planning • Property Sales: 2 • Board of Adjustments • Niche Sales: 0 • Clallam County DUI Victims Panel • Interments: 2 • Clallam County Historical Society • Grave Inurnments: 0 • Engineering • Niche Inurnments: 0 • Fire Department • Pre-Need Sales: $6,481.76 • Clallam County HAZWOPER Training • At-Need Sales: $1,768.25 February • Property Sales: 0 • Niche Sales: 2 • Interments: 0 • Grave Inurnments: 3 • Niche Inurnments: 0 • Pre-Need Sales: $5,972.70 • At-Need Sales: $6,831.21 March • Property Sales: 1 • Niche Sales: 0 • Interments: 3 • Grave Inurnments: 0 • Niche Inurnments: 1 • Pre-Need Sales: $4,015.54 • At-Need Sales: $4,627.95 Total Sales: $29,697.41 M - 5 Administrative & C6ntrad Projects Parrs Maintenance • Continuing CFP Process • Janitorial Maintenance-Restroom Cleaning, Litter • 2014 Budget Amendments Pick-Up, Graffiti Removal • Starting 2015 Budget Process • Cemetery Maintenance-Burials,Mowing, • RCO Grant Civic Field-Field Lighting Replacement Project Weedeating, Equipment Servicing • RCO Tier II City Pier Float Replacement Grant • Facility Repairs on City Hall,Vern Burton, Senior • Campfire Clubhouse Ownership Project Center • CFP Projects-Vern Burton Gym Roof, Civic Boiler,Pole#7 • Beautification Maintenance -Pruning in Greenhouse, Repairs(Civic Field). Atrium Cleaning, Removed Fall Plants from City • New Webstte Design and Implementation Facilities&Downtown, Ordered and Planted Spring • Hiring of new Youth&Family Coordinator Flowers,Planted Memorial Trees, Cleaned Tree Pits • Hiring of Seasonal Staff Downtown,Weeding &Placing Bark around City • Blue Star Marker Event-Veteran's Park Facilities • Removed Downtown Holiday Tree at Fountain • Yearly Purchasing • Storm Clean-Up and Monitored Lincoln Park • Working on PAMC changes Equipment Replacement Process Ponds/Big Boys Pond Throughout Winter • • • New Recreation Work Order Development for Tracking Cleaned Boat Launch and Made Repairs on Ediz Hood Floats • Completed Field&Playground Inspections • Completed Parks Monthly Safety Meetings • Sports Maintenance-Prepped Civic Field,Volunteer Field, &Lincoln Park Fields for Baseball&Soccer. • Field Renovations on Volunteer&Civic Field. • Turf Maintenance-Mowing,Trimming, and Edging various Parks&Facilities. • Waterfront Trail Slide Clean-Up • Interviewed and Hired Park Seasonals • Purchased Yearly Supplies • Pesticide Training for Keohokalole&Breitbach • Installation of the Shane Park Playground. • Assisted with Vandalism Clean Up Webster Woods • Had Civic Field Poles Inspected by Structural Engineer M - 6